Candel Therapeutics secures $130 million term loan facility with Trinity Capital

Candel Therapeutics Inc. (NASDAQ: CADL) entered into a five-year, $130 million term loan facility with Trinity Capital Inc. (NASDAQ: TRIN), the clinical-stage biopharmaceutical company announced.

The loan facility consists of four tranches, with $50 million drawn upon closing. The second and third tranches totaling $50 million are available subject to achieving certain regulatory, clinical and operational milestones. A fourth tranche of $30 million is available at the lender's discretion.

Interest is payable at a fixed or floating rate at the company's option, initially 10.25% per annum. The facility has a five-year term with an interest-only period of 36 months, extendable for an additional 12 months upon achieving a certain commercial milestone.

Proceeds from the first tranche will refinance an existing loan agreement with First-Citizens Bank & Trust Company dated February 24, 2022, and fund working capital, general corporate purposes, and initiation of a phase 3 clinical trial of CAN-2409 in non-small cell lung cancer. The company also plans to prepare for a Biologics License Application submission for CAN-2409 in prostate cancer in the fourth quarter of 2026.

Charles Schoch, CFO of Candel Therapeutics, stated the financing combined with the company's $87.2 million in cash and cash equivalents as of September 30, 2025, positions the company for the initiation of the phase 3 clinical trial of CAN-2409 in NSCLC in the second quarter of 2026.

The company announced it will seek externally funded partnerships for clinical development of CAN-2409 in pancreatic ductal adenocarcinoma to focus resources on early localized prostate cancer and NSCLC indications.

Jefferies LLC served as the company's exclusive financial advisor on the transaction.

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