Debt

9 Months Ended

Sep. 30, 2022

Debt Disclosure [Abstract]

Debt Disclosure

Debt

In May 2022, we entered into a term loan facility (the “Oxford Loan Agreement”) with Oxford Finance LLC (the "Lender") for up to $100.0 million. At closing, we entered into a term loan for $10.0 million of an initial $25.0 million tranche, with the remaining $15.0 million available through the end of the year. The Oxford Loan Agreement provides for an additional $75.0 million over three tranches, $50.0 million of which is at our option upon the satisfaction of certain conditions related to the development of PLN-74809 (bexotegrast) and one of our preclinical product candidates, and $25.0 million at the Lender's discretion. In connection with the Oxford Loan Agreement, we granted a security interest in substantially all of our current and future assets. There are no warrants or financial covenants associated with the Oxford Loan Agreement.

Borrowings under the Oxford Loan Agreement bear interest at a rate per annum equal to 1-month term Secured Overnight Financing Rate (SOFR) plus 8.5%, subject to an agreed upon floor and cap. The Oxford Loan Agreement requires the Company to make monthly interest-only payments until July 1, 2026 (extendable to July 1, 2027) with monthly interest and principal payments thereafter until the maturity date of May 1, 2027 (extendable to May 1, 2028).

The estimated fair value of the term loan as of September 30, 2022 was measured using Level 2 and Level 3 inputs and approximates the carrying value recorded to the condensed balance sheet. The effective interest rate for the term loan is 12.45% and interest expense for the three and nine months ended September 30, 2022 was $0.3 million and $0.5 million, respectively. We had no outstanding debt and did not incur interest expense in 2021.

Future maturities of debt as of September 30, 2022 are as follows (in thousands):

	As of September 30, 2022
2022	$	—
2023	—
2024	—
2025	—
2026	5,455
Thereafter	4,545
Total payments	$	10,000
Less: unamortized debt issuance costs	(139)
Accretion of final payment	$	39
Total	$	9,900