JWCA advises ACHAOGEN on its $50mm CREDIT fACILITY WITH SILICON VALLEY BANK

FEBRUARY 2018 | read press release

Transaction Background

J. Wood Capital Advisors was hired by Achaogen to advise on capital raising and to create a long term capital structure roadmap

Objectives:

• Refinance $20.9mm loan with Solar Capital and raise new capital

• Reduce interest cost

• Provide flexibility for future financing

• Minimize shareholder dilution and restrictive covenants

JWCA developed a capital structure roadmap for Achaogen, evaluating all options available to the Company through capital markets and private financing. JWCA worked closely with the Company to map out various scenarios for stock price performance and approval timing

JWCA ran a process to identify lenders that could best help Achaogen achieve its objectives.  Upon obtaining terms from lenders, JWCA:

• Analyzed terms to help company select the proposal that best met its objectives

• Negotiated with lenders on Company’s behalf to obtain the best terms available

Results

• Saved the Company financing costs through lower interest costs and fees

• Obtained more flexibility through Company-friendly covenants to raise new financing or pursue strategic options going forward

• Provided additional $25mm of dry powder to be used for future needs