Celsion Corporation Secures $10 Million Strategic Loan Facility with Silicon Valley Bank

Strategic Insights -

Celsion Corporation, a Delaware-based biopharmaceutical company, has entered into a $10 million loan facility with Silicon Valley Bank, a leading financial institution. This strategic move aims to provide Celsion with the necessary funding to support its product pipeline, including GEN-1 for the treatment of newly diagnosed advanced ovarian cancer, as well as other initiatives to broaden its product pipeline. The loan facility is secured by money market instruments and bears interest at a calculated WSJ Prime-based variable rate, currently 3.25%.

Key Takeaways:

  • Celsion Corporation has entered into a $10 million loan facility with Silicon Valley Bank, with $6 million immediately used to retire outstanding indebtedness with Horizon Technology Finance Corporation.
  • The remaining $4 million will be available for 12 months after closing to support working capital and fund the advancement of Celsion's product pipeline, including GEN-1 for the treatment of newly diagnosed advanced ovarian cancer.
  • Payments under the loan agreement are interest only for the first 24 months, followed by a 24-month amortization period of principal and interest through the scheduled maturity date.
  • Celsion Corporation has the option to draw down the remaining $4 million up to 12 months after closing.
  • The loan facility bears interest at a calculated WSJ Prime-based variable rate, currently 3.25%.
  • A final payment equal to 3% of the total $10 million commitment amount is due upon maturity or prepayment of the loan facility.

Statistics:

  • Loan facility amount: $10 million
  • Immediate use of loan facility: $6 million
  • Remaining loan facility amount: $4 million
  • Interest rate: 3.25% (calculated WSJ Prime-based variable rate)
  • Payment terms: Interest only for 24 months, followed by 24 months of interest and principal amortization
  • Scheduled maturity date: Not specified
  • Final payment: 3% of the total $10 million commitment amount upon maturity or prepayment

Sources:

  • Celsion Corporation, "Celsion Corporation Enters into $10 Million Strategic Loan Facility with Silicon Valley Bank Update"
  • United States Securities and Exchange Commission, "Form 8-K Current Report" dated June 21, 2021