Tesaro higher after announcing 'non-dilutive' financing
Tesaro announced earlier that it has entered into a definitive term loan agreement with investment funds managed by Pharmakon Advisors. The loan facility provides Tesaro with up to $500N of borrowing capacity available in two tranches. The first $300M is expected to be drawn at an initial closing in early December, and an additional tranche of up to $200M is available for draw at Tesaro's option until December 20, 2018. The loans will mature in December 2024. "This non-dilutive debt facility provides Tesaro sufficient funding with favorable terms as we enter into a period of expected substantial revenue generation and continue to execute on our mission of providing transformative therapies to people facing cancer," said Lonnie Moulder, CEO of Tesaro. "We plan to use the proceeds from the financing to strengthen our leading PARP inhibitor franchise in ovarian cancer, further expand the development of ZEJULA in other tumor types in order to help realize its full potential, and rapidly advance our robust immuno-oncology portfolio using combination-based approaches." Shares of Tesaro are up 2.4% to $85.55 in midday trading.