Starling Oncology Enters $25M Revolving Credit Facility

What Happened

• Starling Oncology, Inc. (through its wholly owned subsidiary Starling Oncology Management, LLC — “SOM, LLC”) announced a Revolving Loan Agreement dated August 20, 2026 with Gemino Healthcare Finance, LLC d/b/a SLR Healthcare ABL. The facility provides up to $25.0 million of revolving borrowing capacity to be used for working capital and general corporate purposes. The facility matures on August 20, 2029. As of the closing on August 21, 2026, $4,750,000 was outstanding.

Key Details

• Facility size: up to $25,000,000 in revolving loans; proceeds for working capital and general corporate purposes.
• Outstanding at close: $4,750,000 (Closing Date: August 21, 2026).
• Interest: Term SOFR + 3.95% per annum, with Term SOFR defined as the greater of the forward-looking 3‑month SOFR and 2.00% (floor); rate resets daily. Default margin: +5.00% if an event of default exists.
• Security and covenants: first‑priority security interest in substantially all SOM, LLC collateral; borrowing availability based on a borrowing‑base formula tied to accounts receivable and required lockbox arrangements with certain professional corporation subsidiaries.
• Fees and charges: monthly collateral monitoring fee of 0.0833% of the average borrowing base; unused line fee 0.04166% per month on the unused portion; minimum use fee if outstanding balance is under $5.0M (effectively charging interest on a $5.0M minimum until the balance exceeds that threshold); and early termination fees of 3%/2%/1% depending on timing.
• Operational covenant: SOM, LLC must maintain Maximum Loan Turn Days of no more than 35 days on a rolling three‑month basis beginning with the quarter ending December 31, 2026.

Why It Matters

• This facility gives Starling Oncology additional liquidity and flexibility to support operations without immediately raising equity, which can be helpful for working capital needs.
• The loan is secured and includes operational covenants, borrowing‑base mechanics and fees that could affect cash flow and collections processes (lockboxes, receivable valuations, minimum‑use charges).
• Investors should note the added debt on the company’s balance sheet (at close $4.75M drawn), interest and fee costs, and the covenant on receivables turn days, which ties borrowing capacity to the company’s billing and collections performance.