Coherus Oncology Enters $55M Senior Secured Term Loan

What Happened

• Coherus Oncology, Inc. (CHRS) announced a Loan and Security Agreement dated August 12, 2026, establishing a Tranche A Term Loan of $55,000,000 (funded August 14, 2026) with a maturity in August 2031. A portion of the proceeds repaid and terminated the company's prior senior secured loan (which carried an 8.0% plus 3‑month SOFR rate and matured May 2029); the remainder will be used for working capital and general business needs. The company may optionally draw two additional tranches of $25M and $20M under certain conditions.

Key Details

• Amount funded: $55,000,000 (Tranche A) on August 14, 2026; optional additional tranches of $25M and $20M.
• Interest and payments: floating rate = 4.15% + the greater of (i) Prime Rate or (ii) 6.75%; interest-only monthly payments for an initial 36 months (can extend to 48 months if revenue and market-cap milestones are met), then monthly principal + interest amortization through Aug 2031.
• Fees and prepayment: facility fee 1.50% of funded principal; prepayment fees of 5%/4%/3%/0% depending on timing (years 1–4+), plus a final fee equal to 4.00% of funded principal (increases to 10.00% in certain insolvency/DIP scenarios).
• Security and covenants: Term Loans are senior secured by liens on substantially all borrowers’ assets (including IP, subject to exceptions) and include customary reps, covenants and a financial covenant requiring minimum unrestricted cash in collateral accounts.

Why It Matters

• This transaction extends the company’s debt maturity to 2031 and replaces the prior loan due in 2029, providing more runway around anticipated product launch periods and added liquidity flexibility. Investors should note the new facility’s size, security on company assets, interest mechanics (including an initial interest‑only period), covenants tied to cash in collateral accounts, and prepayment/finality fees that affect refinancing flexibility.