--- title: "Savara draws $30 million under Hercules Capital loan agreement" url: "https://aibio.space/news/savara-draws-30-million-under-hercules-capital-loan-agreement-repays/" publisher: "aibio.space (Biotech Investor Relations News)" date: "2025-03-26" section: "Debt Financing" tickers: "NASDAQ:SVRA" source: "https://www.sec.gov/Archives/edgar/data/1160308/000119312525064145/d936539d8k.htm" summary: "Savara drew the first $30 million of a loan of up to $200 million from a group led by Hercules Capital, and used it to repay its Silicon Valley Bank term l" --- By the aibio.space news desk. Sources - [Savara Inc Form 8-K filed March 26, 2025 (SEC EDGAR)](https://www.sec.gov/Archives/edgar/data/1160308/000119312525064145/d936539d8k.htm) - [Savara Inc exhibit d936539dex991.htm to the March 26, 2025 Form 8-K (SEC EDGAR)](https://www.sec.gov/Archives/edgar/data/1160308/000119312525064145/d936539dex991.htm) - [Savara Inc Form 10-K filed March 7, 2024: business overview and signatures (SEC EDGAR)](https://www.sec.gov/Archives/edgar/data/1160308/000095017024027920/svra-20231231.htm) [SVRA](https://aibio.space/companies/savara/) 2025-03-26 # Savara draws $30 million under Hercules Capital loan agreement, repays Silicon Valley Bank debt Tickers [SVRA](https://aibio.space/companies/savara/) Savara drew the first $30 million of a loan of up to $200 million from a group led by Hercules Capital, and used it to repay its Silicon Valley Bank term loan. Later draws depend on FDA approval of MOLBREEVI, a revenue milestone or lender approval. ## Key facts - **Company**: Savara, Inc. (NASDAQ: SVRA) - **News type**: Debt Financing - **Primary source**: [Savara Inc Form 8-K filed March 26, 2025 (SEC EDGAR)](https://www.sec.gov/Archives/edgar/data/1160308/000119312525064145/d936539d8k.htm) *A downtown skyline with a highway in the foreground. Photo: Carol M Highsmith, CC0, via rawpixel. The picture shows the field, not the companies named.* Savara Inc. (Nasdaq: [SVRA](https://aibio.space/companies/savara/)) drew $30 million on March 26, 2025 under a new Loan and Security Agreement with a group of lenders. Hercules Capital, Inc. is administrative agent and collateral agent. The agreement provides for term loans of up to $200 million. The company disclosed the loan in a [Form 8-K filed March 26, 2025](https://www.sec.gov/Archives/edgar/data/1160308/000119312525064145/d936539d8k.htm) and a [press release](https://www.sec.gov/Archives/edgar/data/1160308/000119312525064145/d936539dex991.htm). ## Repaying the Silicon Valley Bank loan Savara used the initial $30 million to repay all outstanding obligations under its prior term loan with Silicon Valley Bank, to pay expenses tied to the new agreement and for general corporate purposes. The release describes the repaid debt as an existing $26.5 million facility. The 8-K says Savara terminated its Amended and Restated Loan and Security Agreement with Silicon Valley Bank, dated April 21, 2022. Savara and its subsidiary, Aravas Inc., were the borrowers under that agreement. ## Further draws The 8-K lists three further sources of money: - Up to $40 million on or before March 15, 2026, and up to $40 million on or before December 15, 2026, both subject to FDA approval of MOLBREEVI for autoimmune pulmonary alveolar proteinosis (aPAP). - Up to $20 million on or before December 31, 2027, subject to a revenue milestone: trailing six-month net product revenue from MOLBREEVI of at least 75% of an agreed revenue plan, for any reporting period after March 31, 2027. - Up to $70 million, subject to approval by the lenders' investment committees. The release says MOLBREEVI is not approved in any indication. FDA approval, which unlocks the two $40 million draws, is therefore still ahead. The release says the company has submitted a Biologics License Application for the drug. ## Rate, maturity and repayment The term loan matures on April 1, 2030. It bears a floating rate equal to the greater of the prime rate reported in The Wall Street Journal or 6.0%, plus 1.45%, falling to 1.20% after the revenue milestone. Payments are interest only through March 2028. From April 1, 2028, Savara must pay equal monthly installments of principal and interest until maturity. If it achieves the FDA approval milestone, the interest-only period runs to maturity instead. The release says there are no warrants in connection with the agreement. ## Security and covenants The loan is secured by a first-priority perfected security interest in Savara's tangible and intangible assets, other than intellectual property, which is subject to a negative pledge. The agreement contains customary affirmative and negative covenants and events of default. Starting April 1, 2026, Savara must keep unrestricted cash in an account control agreement equal to 50% of the outstanding principal. That falls to 35% after the revenue milestone and compliance with a minimum revenue covenant. If FDA approval has not been achieved, the requirement rises to 70% until it is. The cash requirement does not apply while market capitalization exceeds $600 million. If Savara draws more than $50 million, a minimum revenue covenant applies from nine months after FDA approval. It requires trailing six-month net product revenue of at least 65% of a provided sales forecast or $100 million. If Savara raises at least $75 million in net cash from equity or upfront business development payments before June 30, 2026, that covenant is delayed until 15 months after approval. It does not apply while market capitalization exceeds $500 million and Savara keeps the required cash. ## What the company says Matt Pauls, Chair and Chief Executive Officer, called the financing "low-cost capital" that strengthens the company's financial position after the BLA submission. Tom Hertzberg, Managing Director at Hercules Capital, said the firm was proud to support Savara. The release describes Savara as focused on rare respiratory diseases, and MOLBREEVI is in Phase 3 development for aPAP. The 8-K names no individual lender, and it names no counsel or placement agent. Chief Financial and Administrative Officer Dave Lowrance signed the 8-K for Savara. The company plans to file the full loan agreement with its Form 10-Q for the period ended March 31, 2025. [Report an error](https://aibio.space/reputation/#correction) ## Companies in this story SVRA Savara, Inc. 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Cite as: aibio.space, "Savara draws $30 million under Hercules Capital loan agreement", 2025-03-26, https://aibio.space/news/savara-draws-30-million-under-hercules-capital-loan-agreement-repays/