ALX ONCOLOGY HOLDINGS INC 8-K

What Happened
ALX Oncology Holdings Inc. announced on June 25, 2026 that its subsidiary ALX Oncology Inc. entered into a secured loan and security agreement with HSBC Ventures USA Inc. for a multi‑tranche term loan facility of up to $50.0 million. At closing the borrower drew $10.0 million, which was used to repay the Company’s existing loan with Oxford Finance and Silicon Valley Bank and to pay closing fees and expenses. The loan agreement was reported on Form 8‑K filed June 26, 2026.

Key Details

• Facility size and draws: up to $50.0M total; $10.0M borrowed at closing. An additional $20.0M is available to draw through June 30, 2028; $10.0M more becomes available upon specified clinical milestones; and up to $10.0M is available at the lender’s discretion.
• Economics and term: maturity date June 1, 2030; interest = greater of Prime Rate and 6.0% (floating), paid monthly; amortization begins July 1, 2028 (or July 1, 2029 if an Interest Only Milestone Event occurs).
• Fees and prepayment: prepayment fee of 2.0% (≤1 year), 1.0% (year 1–2), then none; final payment fee of 2.0% of original funded principal at termination or maturity; other customary facility fees apply.
• Security and covenants: obligations secured by substantially all assets (negative pledge on IP); guarantors include ALX Oncology Holdings Inc. and ALX Oncology Limited and future subsidiaries (subject to limits); customary affirmative and negative covenants and events of default (payment default, misrepresentation, covenant breaches, cross‑defaults, insolvency, etc.).

Why It Matters
This transaction provides ALX with near‑term liquidity ($10M drawn) and access to additional capital (up to $40M more under various conditions), refinancing its prior credit arrangement and extending debt maturity to 2030. Key investor considerations include the interest rate floor of 6.0%, the secured nature of the loans (substantially all assets pledged), amortization timing tied to milestones, and prepayment/final fees — all of which affect cash interest and flexibility. The facility’s covenants and default triggers are standard for this type of financing but could restrict certain corporate actions while in place.