SECURITIES AND EXCHANGE COMMISSION
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On December 17, 2019, Global Blood Therapeutics, Inc. (the “Company”) entered into a Loan Agreement (the “Loan Agreement”) with funds managed by Pharmakon Advisors LP, BioPharma Credit PLC, as collateral agent and a lender, and Biopharma Credit Investments V (Master) LP, as a lender (together, “the Lenders”), for a senior secured credit facility consisting of an initial term loan of seventy-five million dollars ($75,000,000), with the ability to draw an additional seventy-five million dollars ($75,000,000) until December 31, 2020 (collectively, the “Term Loan”).
The facility carries a 72-month term with interest only payments on the Term Loan for the first 39 months. The Term Loan will mature in December 2025 and bear an interest rate of 7.00% plus the LIBOR rate. The Term Loan is subject to mandatory prepayment provisions that require prepayment upon change of control.
The obligations under the Loan Agreement are secured by a first priority security interest in and a lien on substantially all of the assets of the Company, subject to certain exceptions.
The Loan Agreement contains certain customary representations and warranties, affirmative and negative covenants and events of default applicable to the Company and its subsidiaries. If an event of default occurs and is continuing, the Lenders may, among other things, accelerate the loans and foreclose on the collateral.
The foregoing description of the terms of the Loan Agreement does not purport to be complete and is subject to, and is qualified in its entirety by, reference to the Loan Agreement, which the Company intends to file as an exhibit to its Annual Report on Form 10-K for the fiscal year ending December 31, 2019.
The information in Item 1.01 above with respect to the Loan Agreement is incorporated by reference into this Item 2.03.
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
|Global Blood Therapeutics, Inc.|
|Date: December 18, 2019||By:||/s/ Jeffrey Farrow|
|Chief Financial Officer|
(Principal Financial Officer)