Biopharmaceutical company Akebia Therapeutics closed a term loan facility with funds and accounts managed by BlackRock that provides for up to $55 million in borrowing capacity available in three tranches.
At the closing, Akebia drew the first tranche of $37 million and used the proceeds to pay down $35 million of principal outstanding from a loan agreement with Pharmakon Advisors, the investment manager of the BioPharma Credit funds, plus interest and fees. The new agreement extends the interest-only period in the event of approval of Akebia’s vadadustat by the U.S. Food and Drug Administration without requiring any principal repayment until Dec. 31, 2025, with an option for Akebia to extend until Dec. 31, 2026.
Two additional tranches comprising a total of $18 million are available to be drawn down at Akebia’s option through Dec. 31, 2024, contingent in part on FDA approval of vadadustat.
“Now within two months of a major milestone, the potential U.S. approval of vadadustat, we are pleased to have further strengthened our balance sheet with the immediate addition of a $37 million loan facility on very competitive terms with an excellent partner in BlackRock,” John P. Butler, CEO of Akebia, said. “The loan from BlackRock-managed funds and accounts enables our team to use capital more strategically as we prepare to launch a potential new medication for patients on dialysis with anemia. We also deeply appreciate Pharmakon, a tremendous partner for more than four years. The ongoing support from Pharmakon has contributed meaningfully to our ability to fund operations as we worked through the regulatory process for vadadustat globally. We are now delighted to embark on this new journey with this investment from BlackRock.”
