KaloBios Pharmaceuticals, Inc. (OTCMKTS:KBIO) Files An 8-K Entry into a Material Definitive Agreement

KaloBios Pharmaceuticals, Inc. (OTCMKTS:KBIO) Files An 8-K Entry into a Material Definitive Agreement

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Item 1.01.

Entry into a Material Definitive Agreement
Item 2.03.
Creation of a Direct Financial Obligation or an
Obligation under an Off-Balance Sheet Arrangement of a
Registrant
On March 23, 2017, KaloBios Pharmaceuticals, Inc. (the Company)
issued a press release announcing that it had received proceeds
of approximately $5.5 million from an additional loan from its
key investors. A copy of the press release is filed as Exhibit
99.1 hereto and incorporated herein by reference.
Amendment to Credit and Security Agreement
On March 21, 2017, the Company entered into an amendment (the
Amendment) to the Credit and Security Agreement dated December
21, 2016 (the Credit Agreement) with Black Horse Capital Master
Fund Ltd., as administrative agent and lender (BHCMF or Agent),
Black Horse Capital LP, as a lender (BHC), Cheval Holdings, Ltd.,
as a lender (Cheval) and Nomis Bay LTD, as a lender (Nomis and,
together with BHCMF, BHC and Cheval, the Lenders). The Credit
Agreement provided for a term loan in the original principal
amount of $3,315,217.00 (the Term Loan)
The Amendment provides for an additional loan of $5,978,260, less
an upfront fee equal to $478,260 (the Upfront Fee), and requires
the payment by the Company to the Lenders of a commitment fee
equal to $275,000 (the Commitment Fee), bringing the total amount
of the Term Loan to $9,293,477. In accordance with the terms of
the Credit Agreement, the Company will use the proceeds from the
additional loan for general working capital, the payment of
certain fees and expenses owed to the Agent and the Lenders in
connection with the Credit Agreement and other costs incurred in
the ordinary course of business. Aside from the increase in the
principal amount extended, the Amendment did not modify any of
the terms under the Credit Agreement, all of which will be
applicable to the additional loan extended to the Company by the
Lenders.
The foregoing description of the Amendment does not purport to be
complete and is qualified in its entirety by reference to the
copy thereof filed as exhibit 10.1 hereto and incorporated herein
by reference.
Promissory Notes
In connection with the Companys execution of the Amendment, the
Company has issued in favor of each Lender a promissory note in
an amount equal to each Lenders additional loan commitment under
the Amendment. The new promissory notes are attached hereto as
Exhibits 10.2, 10.3, 10.4 and 10.5 and are incorporated herein by
reference.
Item 9.01.
Financial Statements and Exhibits.
(d)
Exhibit
Exhibit Description
10.1
Amendment to the Credit and Security Agreement, dated as of
March 21, 2017, by and among KaloBios Pharmaceuticals,
Inc., Black Horse Capital Master Fund Ltd., Black Horse
Capital LP, Cheval Holdings, Ltd. and Nomis Bay LTD.
10.2
Term Loan Note, dated March 21, 2017, by KaloBios
Pharmaceuticals, Inc. in favor of Black Horse Capital
Master Fund Ltd.
10.3
Term Loan Note, dated March 21, 2017, by KaloBios
Pharmaceuticals, Inc. in favor of Black Horse Capital LP.
10.4
Term Loan Note, dated March 21, 2017, by KaloBios
Pharmaceuticals, Inc. in favor of Cheval Holdings, Ltd.
10.5
Term Loan Note, dated March 21, 2017, by KaloBios
Pharmaceuticals, Inc. in favor of Nomis Bay LTD.
99.1
Press release dated March 23, 2017.


About KaloBios Pharmaceuticals, Inc. (OTCMKTS:KBIO)

KaloBios Pharmaceuticals, Inc. is a biopharmaceutical company. The Company focuses on developing medicines for patients with neglected and rare diseases, with an ancillary focus on pediatric conditions. The Company’s product candidate is benznidazole for the treatment of Chagas disease, a parasitic illness that can lead to long-term heart, intestinal and neurological problems. It is engaged in developing monoclonal antibodies, lenzilumab, for the treatment of chronic myelomonocytic leukemia and juvenile myelomonocytic leukemia both of which are rare hematologic cancers. It is exploring development of another of its monoclonal antibodies, ifabotuzumab, for the treatment of rare solid and hematologic cancers. Its KB001-A, is a Humaneered, PEGylated, anti-PcrV modified antibody fragment (Fab) antibody developed for the prevention and treatment of Pseudomonas aeruginosa (Pa), infections in mechanically ventilated patients and cystic fibrosis (CF), patients with chronic Pa lung infections.

KaloBios Pharmaceuticals, Inc. (OTCMKTS:KBIO) Recent Trading Information

KaloBios Pharmaceuticals, Inc. (OTCMKTS:KBIO) closed its last trading session down -0.02 at 2.48 with shares trading hands.

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