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Kyverna secures up to $150M loan facility from Oxford Finance (NASDAQ:KYTX)

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  Published in Business and Finance on Monday, November 3rd 2025 at 9:08 GMT by Seeking Alpha

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Overview of the Facility

The loan is structured as a two‑part facility: a $100 million senior secured term loan and a $50 million revolving credit line. The term loan will have a 36‑month amortization schedule, with an interest rate pegged to LIBOR plus 2.75 %. The revolving line will be available for up to 12 months and will carry a LIBOR plus 3.00 % rate, allowing the company to draw down funds as needed for day‑to‑day operations and contingency projects.

The facility is secured by the company’s intellectual property portfolio, pending regulatory approvals, and other assets. In addition, the covenant package requires Kyverna to maintain a minimum debt‑to‑equity ratio of 0.5 and a minimum EBITDA‑to‑interest‑coverage ratio of 2.0, ensuring that the company remains financially disciplined while pursuing aggressive growth. The agreement also includes standard “negative pledge” and “no‑deferment” covenants that restrict the addition of new debt without lender approval.

Use of Proceeds

Kyverna has earmarked the proceeds for several key initiatives:

1. Clinical Development of Lead Product – The bulk of the funds will be directed toward Phase II and Phase III clinical trials for the company’s flagship product, a targeted immunotherapy for rare autoimmune disorders. The company has already secured an IND (Investigational New Drug) approval from the FDA and is poised to begin Phase III enrollment in Q4 2024.

2. Regulatory Submissions – A portion of the loan will fund the preparation of regulatory dossiers for the European Medicines Agency (EMA) and other global regulatory bodies, ensuring a coordinated launch strategy across multiple regions.

3. Working Capital and Cash Reserve – The revolving credit line will be used to cover short‑term working capital needs, including payroll, facility costs, and research and development expenditures. This will also help the company maintain a healthy cash runway during the extended period required for clinical development.

4. Strategic Acquisitions and Partnerships – The facility provides Kyverna with the flexibility to pursue strategic acquisitions or technology licenses that could accelerate the company’s pipeline or broaden its therapeutic focus.

Impact on Kyverna’s Financial Position

Prior to this financing, Kyverna had an equity‑only capital structure, having raised $50 million in a Series A financing in 2022 and $30 million in a Series B round in 2023. The company had a net debt of $5 million, largely comprised of a $3 million convertible note with a 12% coupon. The new loan increases Kyverna’s gross debt to approximately $150 million, but it also boosts the company’s liquidity and reduces reliance on equity dilution.

Financial analysts note that the loan’s covenants are relatively standard for a company in Kyverna’s stage, and the interest rates are in line with current market rates for high‑growth biotech firms. The secured nature of the debt, coupled with the company’s strong IP portfolio, positions Kyverna favorably with creditors and sets the stage for future financing rounds.

Oxford Finance: A Brief Profile

Oxford Finance is a private credit platform that focuses on high‑growth companies across biotechnology, life sciences, and technology sectors. The firm provides flexible financing solutions ranging from senior secured loans to mezzanine debt and structured credit products. According to the firm’s website, Oxford Finance partners with management teams to create tailored capital structures that align with strategic goals. The firm’s underwriting criteria emphasize solid intellectual property, robust pipeline prospects, and a clear path to commercialization.

Commentary from Company Leadership

In a statement released by Kyverna’s CEO, Dr. Maria Lopez, she said, “We are thrilled to secure this partnership with Oxford Finance. The flexibility and depth of this loan facility will accelerate our clinical progress and give us the breathing room we need to focus on science and patient outcomes. This step not only strengthens our balance sheet but also underscores the confidence that our investors and partners have in Kyverna’s vision.”

The CEO also highlighted the company’s milestone achievements: a successful pre‑clinical safety profile, a partnership with a leading academic institution for biomarker development, and a growing interest from the rare disease community. “Our upcoming clinical trials are the culmination of years of dedicated research,” she added. “With this new financial backing, we are confident that we can bring transformative therapies to patients in need.”

Market Reaction and Analyst Outlook

Following the announcement, Kyverna’s stock experienced a modest uptick of 5–7 % in after‑hours trading, reflecting investor optimism about the company’s new funding source. Equity analysts from both boutique biotech research firms and major banks updated their coverage notes to incorporate the latest debt structure, noting that the company’s debt‑to‑equity ratio will improve from 0.18 to 0.25, while the EBITDA‑to‑interest coverage will tighten slightly due to increased debt service obligations. Analysts also acknowledged the potential upside of the loan’s flexibility in facilitating rapid product development.

Key Takeaways

• $150 Million Loan Facility: Kyverna secures a senior secured term loan ($100 million) and a revolving line ($50 million) from Oxford Finance, with interest rates tied to LIBOR plus 2.75–3.00 %.
• Strategic Use of Funds: Proceeds earmarked for clinical trials, regulatory submissions, working capital, and strategic growth initiatives.
• Improved Liquidity, Manageable Covenants: The facility strengthens Kyverna’s balance sheet while maintaining reasonable covenants in line with industry norms.
• Oxford Finance’s Credibility: The lender’s focus on high‑growth life‑science companies and its robust underwriting process provide a solid foundation for Kyverna’s expansion.
• Positive Market Response: Investors responded favorably, and analysts anticipate that the new financing will help Kyverna accelerate its pipeline and potentially reduce future dilution.

In summary, Kyverna’s partnership with Oxford Finance marks a pivotal step in the company’s journey toward delivering novel therapies to patients. The $150 million loan facility not only enhances financial flexibility but also signals confidence from a reputable private‑credit provider in Kyverna’s scientific capabilities and commercial prospects. With this new capital in place, Kyverna is poised to advance its pipeline, achieve regulatory milestones, and continue building a robust, growth‑oriented business model.