Agenus Eliminates $39M Senior Notes, Closes $10M in New Debt Financing

Agenus Inc.

, a leading developer of therapeutic vaccines for cancer and infectious diseases, reported today that it has retired its outstanding $39 million 8.00% senior secured convertible notes issued in 2006 due August 2014 (the "2006 Notes") with its holders. This debt has been eliminated in exchange for $10 million in cash, 2,500,000 shares of common stock and a twenty percent revenue interest from QS-21 Stimulon^® adjuvant partnered programs. In connection with the retirement of the 2006 Notes, the company entered into two separate financial transactions. The company has closed a senior secured debt transaction for $5 million with Silicon Valley Bank. This debt has an annual coupon payment of 6.75% and matures in 24 months. In addition, the company has closed a separate senior subordinated debt offering with investors for $5 million, with an annual coupon rate of 10%, and 500,000 warrants at an exercise price of $4.41 per share. This debt matures in 24 months and can be prepaid at any time without fees or penalties. These transactions reduce the total debt obligation of the company to $10 million.