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Senior Secured Term Loan Facilities
 9 Months Ended
Sep. 30, 2025
Debt Disclosure [Abstract]  
Senior Secured Term Loan Facilities

7. Senior Secured Term Loan Facilities

In April 2023, the Company entered into a financing agreement (“Financing Agreement”) with investment funds managed by MSTV, as lenders (the “Lenders”), and Wilmington Trust, National Association, as the administrative agent, providing for senior secured term loan facilities, and received $74.1 million, representing a $75.0 million initial term loan (the “Initial Term Loan”), net of $0.9 million issuance costs.

The Initial Term Loan accrued interest at a fixed rate of 14.0% per annum, payable monthly in arrears. The Initial Term Loan would mature on May 8, 2026. The Initial Term Loan was subject to amortization payments. The Company was permitted to prepay the Initial Term Loan from time to time, in whole or in part, subject to payment of a make-whole amount equal to the unpaid principal amount of the portion of the Initial Term Loan being repaid or prepaid, plus accrued and unpaid interest of the portion of the Initial Term Loan being repaid or prepaid, plus an amount equal to the remaining scheduled interest payments due on such portion of the Initial Term Loan being repaid or prepaid as if such Initial Term Loan were to remain outstanding until the scheduled maturity date.

The initial issuance costs and the related transaction costs, totaling $3.7 million were amortized as interest expense using the effective interest method over the term of the Initial Term Loan and were reported on the balance sheet as a direct deduction from the amount of the Initial Term Loan. The effective annual interest rate of the Initial Term Loan was 16.13% for the three and nine months ended September 30, 2025 and 2024. The Company recorded interest expense of $1.9 million and $7.8 million for the three and nine months ended September 30, 2025, and $2.9 million and $8.7 million, respectively, for the three and nine months ended September 30, 2024, respectively, which were included in discontinued operations as the Company was required to repay the loan upon the closing of the divestiture of FibroGen International.

On August 29, 2025, upon the above-mentioned Transaction close, the Company paid the Lenders a total of $80.9 million, including $75.0 million for paying off the senior secured term loan facilities, $0.4 million for outstanding interest and $5.5 million for related premium and fees. Accordingly, the Company recorded a loss on debt extinguishments of $6.6 million, including the $5.5 million of premium and fees and a $1.1 million amortization of issuance costs, for the three and nine months ended September 30, 2025.

The balance of the Company’s senior secured term loan facilities as of December 31, 2024 was as follows (in thousands):

 

 

 

December 31, 2024

 

Principal of senior secured term loan facilities

 

$

75,000

 

Less: Unamortized issuance costs and transaction costs

 

 

(1,908

)

Senior secured term loan facilities, ending balance

 

$

73,092

 

Representing:

 

 

 

Senior secured term loan facilities, current

 

$

—

 

Senior secured term loan facilities, non-current

 

$

73,092