Kindred Biosciences, Inc., a commercial-stage biopharmaceutical company focused on saving and improving the lives of pets, announced the closing of a $50 million senior secured debt facility with investment affiliates managed by Solar Capital Partners, LLC.

"We are pleased to have further strengthened our balance sheet and extended our operating cash runway with this non-dilutive financing. The strong credit market and high demand among lenders enabled us to achieve attractive terms on this facility. This gives us the potential to fund the current operating plan at least through the end of 2021, by which time we expect approval and launch of multiple additional products with substantial revenue potential. Assuming typical refinancing, we expect to pay the principal of the loan after we achieve positive cash flow," said Richard Chin, Chief Executive Officer of KindredBio. "We continue to make substantial progress on our deep pipeline, with six positive pilot efficacy studies and three positive pivotal studies in a row. We look forward to a number of important catalysts through year-end as we execute on our capital-efficient business model."

The non-dilutive financing agreement provides KindredBio with up to $50 million of borrowing capacity available in three tranches, each bearing interest at 1-Month LIBOR + 6.75% with a floor of 2.17%. Under the terms of the agreement, an initial tranche of $20 million was funded at closing. KindredBio is required to make interest only payments on a monthly basis through October 2021. An additional $30 million will be available in two tranches at the company's option, subject to certain conditions. The entire debt facility will mature on September 30, 2024. Further information with respect to the credit facility is set forth in a Form 8-K filed by KindredBio with the Securities and Exchange Commission on October 2, 2019.

Cantor Fitzgerald & Co acted as Sole Lead Arranger and financial advisor to KindredBio on this transaction.