Ropes & Gray advised ImmunoGen in Obtaining $175 Million Term Loan

Ropes & Gray advised ImmunoGen in Obtaining $175 Million Term Loan

ImmunoGen, Inc., a leader in the field of antibody-drug conjugates (ADC) for the treatment of cancer, received legal counsel from global law firm Ropes & Gray in a term loan financing of up to $175 million from entities managed by Pharmakon Advisors. The announcement of the financing was made on April 6.

As per the agreement, the loan facility will be accessible to ImmunoGen in two portions. The first tranche of $75 million will be utilised upon execution, while the second tranche of $50 million will be made available to the company at its discretion once positive data from its confirmatory MIRASOL trial and a net sales threshold for the ADC launch of ELAHERE have been achieved.

Upon mutual agreement of the parties, this tranche can be increased to $100 million.

The facility will expire five years from the initial funding date. During the first 36 months, payments will be interest-only. An extension of 12 months will be available if specific conditions are met. After that period, ratable principal payments will begin for the remaining loan duration. The interest rate will be based on the three-month Secured Overnight Financing Rate, subject to a 2.75 per cent floor, and will include an additional 8.00 per cent per annum.

The team from Ropes & Gray was led by partner Dan Coyne, who specialises in private equity. The team also included partner Hannah England, who has expertise in IP transactions, partner David Saltzman, who specialises in tax law, senior attorney Jessica Subler, who focuses on private equity, and associate Georgina Jones Suzuki, who has experience in IP transactions.