Reata Pharma closes $35M loan to support clinical development activities; shares up 2%

|About: Reata Pharmaceuticals (RETA)|By:, SA News Editor

Reata Pharmaceuticals (RETA +1.5%) inks a $35M loan and security agreement with Oxford Finance LLC and Silicon Valley Bank. Proceeds will support its clinical trials for bardoxolone and omavaloxolone.

The first tranche of $20M was funded on March 31. The remaining $15M tranche will be available from July 1 until March 31, 2018.

The interest rate is the sum of 7.4% plus the greater of 0.75% or the 30-day U.S. dollar LIBOR, not to exceed a total of 10.15%. An additional fee of 2.95% will be due when the principal is paid is paid in full (loan is due on March 1, 2022).