Starling Oncology taps SLR Healthcare ABL for $25 million revolving facility, draws $4.75 million at close

A $25 million revolving credit facility, priced at Term SOFR plus 3.95 percent and maturing August 20, 2029, is now in place at Starling Oncology, Inc. (Nasdaq: STLN) after its operating subsidiary closed the arrangement with Gemino Healthcare Finance, LLC on August 21, 2026. The direct borrower is Starling Oncology Management, LLC. At closing, $4.75 million was already outstanding.

Rate and fee structure

Gemino Healthcare Finance, operating as SLR Healthcare ABL, holds a first-priority security interest in substantially all of SOM, LLC's current and after-acquired collateral. Loans price at Term SOFR plus 3.95 percent. Term SOFR is the greater of the three-month forward-looking SOFR rate and a 2.00 percent floor, reset daily. Interest is due monthly on the first of each month. A default event would add 5.00 percent to the applicable rate.

A minimum balance concept applies: if outstanding loans fall below $5 million, a minimum use fee accrues at the full contract rate on that $5 million floor. Additional fees include a collateral monitoring charge of 0.0833 percent per month on the average borrowing base and an unused line fee of 0.04166 percent per month on the average undrawn balance. Termination carries a fee that steps down over the term: 3.00 percent of the $25 million commitment in year one, 2.00 percent in year two, 1.00 percent from the second anniversary through the August 2029 maturity.

The setup

Availability is not a straight draw. Borrowings must fit within a formula tied to accounts receivable, subject to periodic certification. Starling Oncology's 8-K states the facility is intended to provide financial flexibility if needed, and the company is not required or expected to draw the full $25 million. The $4.75 million outstanding at closing reflects an initial, partial draw against that capacity.

Three professional corporations in the Starling network (Starling Oncology CA, APC; The Oncology Institute FL, LLC; and Starling Oncology OR, a professional corporation) must enter lockbox arrangements over SOM, LLC's receivables. The binding operational covenant is a Maximum Loan Turn Days cap of no more than 35 days on a rolling three-month basis. Watch December 31, 2026: that is when the first quarterly measurement of that covenant falls due. The full Revolving Loan Agreement is attached as Exhibit 10.1 to the August 20 Form 8-K.

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