Atea Pharmaceuticals, Inc. filed a Current Report on Form 8-K on November 9, 2026, disclosing that it entered into a Loan and Security Agreement with Hercules Capital, Inc. on November 6, 2026, providing for term loans of up to $200.0 million.

Key Highlights

  • Facility size: The agreement provides for senior secured term loans in an aggregate principal amount of up to $200.0 million, maturing November 1, 2031.
  • Initial draw: A Tranche 1 Term Loan of $65.0 million was drawn on the closing date of November 6, 2026.
  • Interest rate: All term loans bear interest at the greater of the prime rate plus 2.35% or 9.35%, payable monthly in arrears.
  • Interest-only period: The term loans are interest-only for 48 months, extendable to maturity upon achievement of a commercial milestone by a specified date.
  • Upfront fees: The company is required to pay an initial upfront fee of $650,000, plus 1.00% of any advance for Tranche 2 through Tranche 5.
  • Key condition for Tranche 2: Availability is subject to conditions including successful completion of an ongoing Phase 3 clinical trial evaluating the fixed-dose combination of bemnifosbuvir and ruzasvir (BEM/RZR) prior to a specified date in the second half of 2027.
  • Collateral: The company's obligations are secured by substantially all of its assets, including its intellectual property.

Atea Pharmaceuticals Enters Structured $200M Term Loan with Hercules Capital

According to the filing, Atea Pharmaceuticals, Inc. (NASDAQ:AVIR) entered into a Loan and Security Agreement with Hercules Capital, Inc. as agent and associated lenders on November 6, 2026. The agreement structures up to $200.0 million in senior secured term loans across five tranches, with the first tranche of $65.0 million drawn immediately at closing. The remaining tranches of up to $35.0 million, up to $35.0 million (net of Tranche 4 amounts), up to $70.0 million (net of Tranche 3 amounts), and up to $30.0 million, respectively, are subject to separate conditions.

The filing states that Tranche 2 availability depends on conditions including the successful completion, prior to a specified date in the second half of 2027, of the company's ongoing Phase 3 clinical trial evaluating BEM/RZR. Tranches 3 and 4 are tied to a financing milestone and certain development and commercialization milestones for BEM/RZR by specified dates. Tranche 5 is available solely at the lenders' discretion. The company disclosed that the agreement includes financial covenants, including a minimum cash covenant tested beginning October 1, 2027, and a performance covenant tied to FDA approval of BEM/RZR.

The filing also notes that upon any prepayment, at maturity, or upon acceleration, the company is required to pay an end of term charge. The agreement permits lenders to accelerate all outstanding obligations upon an event of default, and states that upon certain insolvency or bankruptcy events, all outstanding obligations will be automatically accelerated. The company's future subsidiaries may also be required to join as co-borrowers or guarantors and pledge substantially all of their assets. The filing was signed by Andrea Corcoran, Chief Financial Officer and Executive Vice President, Legal and Secretary.

What Was Disclosed

Atea Pharmaceuticals disclosed the entry into a $200.0 million senior secured term loan facility with Hercules Capital, including an initial $65.0 million draw at closing on November 6, 2026, with additional tranches subject to clinical, development, and commercialization conditions related to BEM/RZR.