KaloBios raises $5mm out of potential $15mm debt offering

KaloBios Pharmaceuticals Inc. (using its Humaneered platform to develop antibodies for Pseudomonas aeruginosa infections, asthma, and cancer) has raised $5mm in the first tranche of a long-term debt financing from MidCap Financial SBIC. The company is required to draw down another $5mm by June 30, 2013, and has the option to borrow an additional $5mm at that time. The loan, which matures on December 31, 2016, carries annual interest of one month LIBOR plus 600 basis points. KaloBios will make interest-only payments from October 1, 2012-January 1, 2014, at which point the biotech will repay the outstanding principle balance in 36 equal monthly installments, plus accrued interest. MidCap has also received a ten-year warrant to buy up to 176.5k Series E preferred shares at $3.40.