Silicon Valley Bank closed a debt facility for Liquidia Corporation, providing up to $20.5 million in term loans. Of the total, $10.5 million was funded at closing.

Under the terms of the debt facility, Silicon Valley Bank will make loans available in three tranches. Proceeds from the first tranche of $10.5 million have been used to retire Liquidia’s existing term debt with Pacific Western Bank and adds approximately $1 million to Liquidia’s balance sheet. A second tranche of $5 million is contingent upon the Food and Drug Administration granting Liquidia tentative approval for LIQ861 by June 30, 2022, and the third tranche of $5 million is contingent upon receipt of final and unconditional approval for LIQ861 by Dec. 31, 2022. The debt facility will mature on Sept. 1, 2024, and will consist of interest-only payments through March 31, 2023.

“We are very pleased to secure this debt facility and to work with Silicon Valley Bank, a great partner who can continue to grow with us,” Michael Kaseta, CFO of Liquidia, said. “The interest-only payments on the first tranche will reduce our cash outlay by $5.5 million in 2021 and $4.5 million in 2022. The additional tranches of debt provide non-dilutive capital at key moments through the course of 2022 as we prepare for LIQ861 commercialization.”

“Liquidia is driving important advancements in the pharmaceutical industry through its innovative PRINT technology,” Scott McCarty, director of life science and healthcare at Silicon Valley Bank, said. “We are proud to support the Liquidia team with this debt facility as the company advances the development and commercialization of LIQ861 and the Treprostinil Injection.”

Liquidia operates through two subsidiaries: Liquidia Technologies and Liquidia PAH. The company, through Liquidia Technologies, is a biopharmaceutical company focused on the development and commercialization of products in pulmonary arterial hypertension (PAH) and other applications of its PRINT technology. Liquidia is developing two product candidates, including LIQ861, an inhaled dry powder formulation of treprostinil for the treatment of PAH, and LIQ865, an injectable, sustained-release formulation of bupivacaine for the management of local post-operative pain for three to five days after a procedure. Liquidia PAH provides commercialization for rare disease pharmaceutical products, such as Treprostinil Injection, Sandoz’s first-to-file, generic treprostinil for PAH.