Tricida has entered into an amendment to its existing debt facility with Hercules Capital. The amendment increases the total amount available under the debt facility to up to $200 million and extends the maturity of the loans thereunder. Tricida originally entered into a $100 million debt facility with Hercules Capital in February 2018.
“Our new debt facility with Hercules provides Tricida with greater financial flexibility and additional access to capital as we prepare for the potential approval and commercial launch of TRC101 in the second half of 2020,” said Geoff Parker, chief financial officer of Tricida. “We now have the option to drawdown substantial capital following the approval of TRC101 and we have significantly extended the maturity of the facility.”
Under the terms of the amendment, the $40 million currently drawn under Tricida’s existing debt facility with Hercules remains outstanding, and additional tranches of $20 million and $15 million are available for drawdown prior to December 15, 2019 and December 15, 2020, respectively. An additional tranche of $75 million will be available for drawdown between January 1, 2020 and December 15, 2020, subject to FDA approval of TRC101. A final tranche of $50 million will be available for drawdown prior to December 15, 2021, subject to future approval by Hercules. The final maturity date of the debt facility is initially four years from closing of the amendment and is extended to five years if the $75 million tranche is drawn.
“Hercules is pleased to expand and extend our financing partnership with Tricida at this important stage as the company continues to advance its late-stage investigational drug candidate targeting a significant unmet medical need,” said Scott Bluestein, interim chief executive officer of Hercules and chief investment officer of Hercules. “This structured investment in Tricida represents one of our largest commitments to date and provides another example of the breadth of our platform and our ability to finance life sciences companies through development and into commercialization. We are excited to continue our partnership with the Tricida management team.”
