Soleno Therapeutics Secures $200 Million Debt Financing with Oxford Finance

On December 17, 2024, Soleno Therapeutics Inc. entered into a significant financial agreement with Oxford Finance LLC, providing the company with a secured term loan facility of up to $200 million. Soleno, a clinical-stage biopharmaceutical company focused on developing therapeutics for rare diseases, drew an initial tranche of $50 million under the loan agreement.

This financing arrangement entails further access for Soleno to up to $100 million in three additional tranches, contingent upon achieving specific milestones related to the development and commercialization of DCCR (diazoxide choline) extended-release tablets for treating Prader-Willi syndrome. Additionally, there is an option for an extra $50 million at the discretion of the lenders. The funds obtained through this loan facility will be allocated for working capital and general business purposes.

The term loans are structured to mature on December 1, 2029, with an amortization schedule commencing after an interest-only period, starting on February 1, 2029. However, meeting certain milestones could potentially extend the maturity date to December 1, 2030. Interest on the term loans will accrue at a floating rate based on SOFR and additional factors, with monthly payments due in arrears.

To secure these obligations, Soleno has pledged substantially all of its assets, including intellectual property. The loan agreement includes customary affirmative and negative covenants to regulate various aspects of the company’s operations and financial activities. Events of default, if triggered, could lead to accelerated repayments, increased interest rates, or other consequences outlined in the agreement.

Soleno Therapeutics also issued a press release on the same day, disclosing the details of the loan agreement as part of its financial update. The company’s CEO, Anish Bhatnagar, highlighted that this financing deal significantly bolsters the company’s financial position, specifically in readiness for forthcoming commercial activities.

This information provided in the 8-K filing highlights Soleno’s efforts to secure additional financial resources for its ongoing operations and future initiatives. The full filing is available for review on the Securities and Exchange Commission’s website, providing a comprehensive overview of the terms and conditions outlined in the loan agreement.

This article was generated by an automated content engine and was reviewed by a human editor prior to publication. For additional information, read Soleno Therapeutics’s 8K filing here.

About Soleno Therapeutics

Soleno Therapeutics, Inc, a clinical-stage biopharmaceutical company, focuses on the development and commercialization of novel therapeutics for the treatment of rare diseases. Its lead candidate is Diazoxide Choline Extended-Release tablets, a once-daily oral tablet, which is in Phase III clinical trials for the treatment of Prader-Willi Syndrome.