Ropes & Gray Advises ImmunoGen in Term Loan Financing Up to $175 Million

Ropes & Gray represented ImmunoGen, Inc., a leader in antibody-drug conjugates (ADC) for the treatment of cancer, in a term loan financing for up to $175 million with entities managed by Pharmakon Advisors. The financing was announced on April 6.

Under the terms of the agreement, the loan facility will be available to ImmunoGen in two tranches. The initial tranche of $75 million will be drawn upon execution; the second tranche of $50 million will be available at the company's option upon achievement of positive data from its confirmatory MIRASOL trial and a net sales threshold for the ADC launch of ELAHERE. This tranche may be increased to $100 million upon mutual agreement of the parties.

The facility will mature five years from initial funding; payments will be interest-only during the first 36 months, with an extension of 12 months if certain conditions are met, after which ratable principal payments will commence for the remainder of the loan. Interest will accrue at the three-month Secured Overnight Financing Rate, subject to a 2.75% floor, plus 8.00% per annum.

The Ropes & Gray team was led by private equity partner Dan Coyne and included IP transactions partner Hannah England, tax partner David Saltzman and IP transactions associate Georgina Jones Suzuki.