--- title: "Spruce Biosciences details its $50.0 million Avenue Capital loan facility" url: "https://aibio.space/news/spruce-biosciences-details-50-0-million-avenue-capital-loan-facility/" publisher: "aibio.space (Biotech Investor Relations News)" date: "2026-05-13" section: "Debt Financing" tickers: "NASDAQ:SPRB" source: "https://www.sec.gov/Archives/edgar/data/1683553/000119312526220648/sprb-ex99_1.htm" summary: "Avenue Capital Management II, L.P. is the lender under a term loan facility signed January 7, 2026. The first $15.0 million tranche funded after closing." --- By the aibio.space news desk. Sources - [Spruce Biosciences, Inc. 8-K (2026-05-13)](https://www.sec.gov/Archives/edgar/data/1683553/000119312526220648/sprb-ex99_1.htm) - [Spruce Biosciences, Inc. 10-K (2026-03-09): business](https://www.sec.gov/Archives/edgar/data/1683553/000119312526097558/sprb-20251231.htm) - [Spruce Biosciences, Inc. financial data (SEC XBRL)](https://www.sec.gov/Archives/edgar/data/1683553/000119312526097558/) [SPRB](https://aibio.space/companies/spruce-biosciences/) 2026-05-13 # Spruce Biosciences details its $50.0 million Avenue Capital loan facility Tickers [SPRB](https://aibio.space/companies/spruce-biosciences/) Avenue Capital Management II, L.P. is the lender under a term loan facility signed January 7, 2026. The first $15.0 million tranche funded after closing. ## Key facts - **Company**: Spruce Biosciences, Inc. (NASDAQ: SPRB) - **News type**: Debt Financing - **Primary source**: [Spruce Biosciences, Inc. 8-K (2026-05-13)](https://www.sec.gov/Archives/edgar/data/1683553/000119312526220648/sprb-ex99_1.htm) *Glass office towers seen from below. CC0, via rawpixel. The picture shows the field, not the companies named.* Spruce Biosciences, Inc. (Nasdaq: [SPRB](https://aibio.space/companies/spruce-biosciences/)) has a term loan facility with Avenue Capital Management II, L.P., the lender, under a Loan and Security Agreement entered into on January 7, 2026. The company described the facility in its first quarter 2026 financial results, released on May 13, 2026. The facility provides term loans of up to $50.0 million across four tranches. ## The loan terms The first tranche, of $15.0 million, funded shortly after closing. The remaining tranches are subject to the achievement of specified regulatory and commercial milestones related to TA-ERT, among other conditions. The company says the Avenue facility does not contain any minimum cash requirement or other financial covenants. Chief Executive Officer Javier Szwarcberg said the April offering, together with the Avenue facility signed in January, left the company well positioned to support TA-ERT through key regulatory milestones. The company said it is preparing for a potential U.S. commercial launch next year. ## Who is involved Avenue Capital Management II, L.P. is the only lender the release names. The release does not name an administrative agent, a collateral agent or a placement agent for the loan, and it does not name legal counsel for the company or the lender. Separately, the company closed an underwritten public offering on April 22, 2026. It sold 1,150,000 shares of common stock at $50.00 per share, and pre-funded warrants to purchase up to 50,000 shares at $49.99 per warrant. The underwriters' 30-day option to buy up to 180,000 additional shares was exercised in full. Aggregate gross proceeds were approximately $69.0 million, before underwriting discounts and commissions. The release does not name the underwriters for that offering. In March 2026, Spruce entered into an Open Market Sales Agreement with Jefferies, under which the company may issue and sell common stock from time to time. Jefferies is the sales agent for that at-the-market program. ## Existing debt The annual report shows that Spruce repaid debt owed to Silicon Valley Bank, with payments of $2.1 million in 2025 and $1.6 million in 2024. Net cash provided by financing activities was $43.5 million in 2025, mainly from a private placement completed in October 2025 that raised $46.6 million. The annual report says that a hypothetical 1% change in interest rates would not have had a material effect on the financial statements. ## Commercial and clinical build-out Dale Hooks joined as Chief Commercial Officer in March 2026, with nearly 35 years of pharmaceutical marketing and sales experience and 21 new product launches. Brian Walls joined as Vice President, Market Access, with more than 20 years of commercial experience and more than 18 product launches. Darren Johnson is Vice President, Commercial Operations. Bruno Gagnon, with more than 30 years of clinical operations experience, is Senior Vice President, Clinical Development Operations. Daven Mody, Pharm.D., with more than 25 years in regulatory affairs, is Senior Vice President, Regulatory and Quality. The company also presented long-term TA-ERT data at the 22nd Annual WORLDSymposium on February 5, 2026. The company says the presentation reported rapid and durable reductions in cerebrospinal fluid heparan sulfate and stabilization of cognitive function relative to natural history. The release gives no patient numbers or statistics for that claim. ## What the money and the data leave open The company says the April offering extended its cash runway into the second half of 2027 and beyond, which is the company's own estimate. The offering sold new shares at $50.00 per share, and a Jefferies at-the-market program is also in place, so more dilution is possible. The Avenue loan adds debt with variable-rate risk noted in the annual report, and only the first $15.0 million has funded; the other tranches depend on regulatory and commercial milestones that have not been met. The BLA is expected in the fourth quarter of 2026, and the company still has to run a confirmatory study and an expanded access program. The release treats approval as anticipated, but the FDA has not approved TA-ERT. [Report an error](https://aibio.space/reputation/#correction) ## Companies in this story SPRB Spruce Biosciences, Inc. NASDAQ ยท United States Open the starter desk ## More in Debt Financing Debt Financing ### [Pelthos amends Horizon venture loan, funds Loans E to H and adds Loans I and J](https://aibio.space/news/pelthos-amends-horizon-venture-loan-funds-loans-e-h-adds-loans/) Oct 30, 2026 Debt Financing ### [Repligen announces $1.0 billion private convertible notes transaction](https://aibio.space/news/repligen-announces-1-0-billion-private-convertible-notes-transaction/) Oct 30, 2026 Debt Financing ### [FOXO to buy Ludwig Enterprises preferred stock with majority voting power](https://aibio.space/news/foxo-buy-ludwig-enterprises-preferred-stock-majority-voting-power/) Oct 29, 2026 --- Source page: https://aibio.space/news/spruce-biosciences-details-50-0-million-avenue-capital-loan-facility/. Facts in aibio.space stories are checked against company filings and releases; opinion is labelled. Cite as: aibio.space, "Spruce Biosciences details its $50.0 million Avenue Capital loan facility", 2026-05-13, https://aibio.space/news/spruce-biosciences-details-50-0-million-avenue-capital-loan-facility/