Instil Bio, Inc., through its subsidiary Complex Therapeutics LLC, entered into a Term Loan Agreement on December 20, 2024, with Midland National Life Insurance Company. This $85.6 million loan refinances prior loans related to the construction and development of a facility in Tarzana, California. The loan has a two-year term with a one-year extension option and bears a fixed annual interest rate of 6.35%, with interest-only payments during the term.

The loan includes conditions for extension, such as the absence of defaults, payment of a 0.35% extension fee, replenishment of reserve funds, and compliance with financial metrics. Prepayment is allowed but includes a prepayment fee if done within the first year, except in certain circumstances. The loan is secured by a first mortgage lien on the property and associated assets.

While the loan is non-recourse, a Recourse Indemnity Agreement signed by Instil Bio makes the company liable in cases of specific breaches or events like voluntary bankruptcy or improper transfer of the property. Additionally, the company must maintain a minimum consolidated net worth of $50 million and liquidity of $17.1 million.

The Construction Loan Agreements previously securing the facility were terminated upon this refinancing.