aibioAltimmune expands Hercules loan facility to $125 million and draws $20 million
Tickers ALT
The amendment raises term loan availability from $100.0 million to $125.0 million and extends the interest-only period to 30 months. Altimmune held $210.8 million in cash, cash equivalents and short-term investments at September 30, 2025.
Key facts
- Company
- Altimmune, Inc. (NASDAQ: ALT)
- News type
- Debt Financing
- Primary source
- Altimmune, Inc. Form 8-K filed November 6, 2025 (SEC EDGAR)
Altimmune, Inc. (Nasdaq: ALT) amended its loan agreement with Hercules Capital, Inc. on November 5, 2025. The amendment raised the size of its term loan facility, and the company drew a second tranche of $20.0 million at the same time. The company reported the amendment in a Form 8-K filed November 6, 2025 under Items 1.01 and 2.03, the day it released third quarter results.
What the amendment changes
The amendment modifies a Loan and Security Agreement dated May 13, 2025 between Altimmune and Hercules, together with the lenders party to it. Under the amended terms, the lenders will make up to four tranches of term loans available, subject to conditions. Total availability rises from $100.0 million to $125.0 million.
The first tranche, $15.0 million, was drawn at closing on May 13, 2025. The second, $20.0 million, was drawn when the amendment closed on November 5, 2025. The third tranche, up to $10.0 million, becomes available if Altimmune reaches certain milestones and meets other conditions. The fourth tranche, up to $80.0 million, requires the approval of the lenders.
The word "up to" marks a ceiling, not money in hand. Based on the 8-K, the company has drawn $15.0 million and $20.0 million so far, and the remaining tranches depend on conditions the filing does not list in full.
Interest, payments and maturity
The amended term loan bears interest at the greater of 9.70% a year and the prime rate as reported in The Wall Street Journal plus 2.45% a year. The interest-only period, during which the company pays interest but not principal, now runs for 30 months from May 13, 2025. The loan matures on June 1, 2029. The amendment also includes a facility charge for the second tranche, which the agreement sets out in its terms.
Because the rate is the greater of two measures, the company's cost of borrowing cannot fall below 9.70% under the amended agreement, whatever happens to prime.
The company's cash
The third quarter release says Altimmune reported cash, cash equivalents and short-term investments of $210.8 million at September 30, 2025. That is up from $131.9 million at December 31, 2024. Interest income for the three months ended September 30, 2025 was $2.4 million.
The release's headline items include 48-week data from the Phase 2b IMPACT trial of pemvidutide in MASH. The 8-K does not assess those data, and the loan filing has no bearing on them. The company's annual report for 2024, filed February 27, 2025, describes pemvidutide as a novel, investigational GLP-1 and glucagon dual receptor agonist in development for obesity and metabolic-associated steatohepatitis, or MASH.
What the loan adds
The $20.0 million second tranche sits on top of the $15.0 million already drawn, and the facility can grow to $125.0 million if the lenders approve and the company meets the conditions. Each drawn dollar carries interest at no less than 9.70%, and the interest-only period ends 30 months after May 13, 2025. The filings do not say how the company plans to repay that principal, and whether the cash on hand is enough to cover it.
The filing also does not say how the company weighed the loan against further equity sales. The release does not explain why the company drew the second tranche now rather than wait for the milestones that unlock the third.