JWCA advises arcus biosciences on its $250 million term loan facility  

august 2024 | read press release

Transaction Background

Arcus Biosciences, Inc. (“Arcus” or “the Company”) wanted to raise capital to help strengthen its balance sheet ahead of the initiation of the Phase 3 trial for casdatifan, focusing on non-dilutive options ahead of several upcoming late-stage development milestones. The Company engaged J. Wood Capital Advisors to analyze alternatives and advise on the financing.

The Company’s objectives included:

• Secure non-dilutive, pre-data capital ahead of the Phase 3 trial of casdatifan to ensure the program is well-funded

• Prudently cushion the balance sheet with a manageable upfront amount at an attractive cost of capital versus equity, with the flexibility to extend cash runway as the casdatifan program progresses

• Minimize financial covenants while maximizing financial and operational flexibility for management

JWCA worked closely with Arcus to evaluate financing vehicles and identify investors that could best meet the Company’s objectives. JWCA then ran a capital raising process with lenders to obtain financing at the best possible pricing and terms for Arcus. Upon obtaining terms from lenders, JWCA:

• Analyzed proposals to help the Company select the one that best met its objectives

• Negotiated with lenders to optimize pricing and terms from initial term sheets through final definitive documentation

Results

Arcus successfully executed the non-dilutive debt financing at best-available terms, pricing, and flexibility

Achieved a financing outcome that balanced the company’s objectives with sizeable capital upfront and optionality to draw additional tranches in the future