Benzinga | Jan 11, 2021 06:31AM EST

Affimed Announces 25 Million Debt Financing Agreement with Silicon Valley Bank

Affimed N.V. (NASDAQ:AFMD), a clinical-stage immuno-oncology company committed to giving patients back their innate ability to fight cancer, today announced that it has entered into a debt financing agreement with Silicon Valley Bank German Branch (SVB) which provides Affimed with up to (euro)25 million in term loans.

"We are pleased to continue our relationship with Silicon Valley Bank," commented Angus Smith, Chief Financial Officer of Affimed. "This financing will help support the broad development strategy for our ICE(r) molecules as monotherapies and in combination with natural killer cells and checkpoint inhibitors."

"We're delighted to continue our support for Affimed and its mission to develop cancer treatments using its proprietary ICE(r) platform," said Nooman Haque, Head of Life Sciences & Healthcare SVB EMEA. "For decades SVB has worked with leading life sciences companies to improve their chances of success."

"The completion of this transaction is another important milestone in the continuing growth of SVB's activities in Germany and we're proud to continue our relationship with one of the landmark biopharma companies in the market," added Oscar Jazdowski, General Manager, SVB German Branch said.

Pursuant to the terms of the agreement, Silicon Valley Bank will make loans of up to (euro)25 million available in three tranches: (euro)10 million available at closing, an additional (euro)7.5 million upon the achievement of certain conditions, including milestones related to Affimed's pipeline and market capitalization, and a third tranche of (euro)7.5 million upon the achievement of certain additional conditions related to Affimed's pipeline and liquidity. The loans will bear interest at the greater of the European Central Bank Base Rate and 0%, plus 5.5%, and Affimed is entitled to make interest only payments through December 1, 2022, or June 1, 2023 if Affimed draws on the third tranche of the loans. The loans will mature at the end of November 2025. There are no financial covenants in the agreement. Proceeds will be used to fund research and development expenses for Affimed's expanding pipeline and for working capital purposes.