Atea Pharmaceuticals secures up to $200 million term loan from Hercules Capital

Atea Pharmaceuticals disclosed in an 8-K that on November 6, 2026 it entered into a Loan and Security Agreement with Hercules Capital, Inc., as agent, and other lenders, providing for term loans of up to $200.0 million¹.

The loans are structured in five tranches. The agreement provides for senior secured term loans maturing on November 1, 2031, split into a $65.0 million Tranche 1 drawn at closing, a Tranche 2 of up to $35.0 million, a Tranche 3 and Tranche 4 totaling up to $70.0 million combined, and a Tranche 5 of up to $30.0 million.¹

Access to later tranches depends on clinical and commercial progress. Tranche 2 becomes available if the company's ongoing Phase 3 trial evaluating the fixed-dose combination of bemnifosbuvir and ruzasvir, known as BEM/RZR, is completed successfully by a deadline falling in the second half of 2027.¹ Tranches 3 and 4 depend on meeting a financing milestone along with certain development and commercialization targets for BEM/RZR by specified dates.¹ Tranche 5 is available only at the lenders' discretion.¹

On pricing, all term loans carry a floating interest rate equal to the greater of the Wall Street Journal prime rate plus 2.35% or 9.35%, paid monthly.¹ Atea must pay an initial upfront fee of $650,000 plus a 1.00% fee on any amounts drawn under Tranches 2 through 5.¹ The loans are interest-only for 48 months, a period that can be extended to maturity if a specified commercial milestone is met by a set date.¹

The agreement also includes financial covenants. A minimum cash covenant begins testing on October 1, 2027, and a separate performance covenant tied to BEM/RZR sales revenue starts six months after FDA approval of the drug, with alternative cash and market capitalization thresholds available to satisfy it.¹ The obligations are secured by substantially all of Atea's assets, including its intellectual property.¹