TherapeuticsMD has signed a binding commitment letter for a fully-negotiated $300 million non-dilutive secured term loan financing facility with TPG Sixth Street Partners (TSSP), the global finance and investment business in strategic partnership with TPG, the global alternative asset firm.
The TSSP term loan facility will be available to the company in three tranches:
- $200 million will be immediately available upon the closing of the facility
- $50 million will be available upon the designation of ANNOVERA as a new category of birth control by the U.S. Food and Drug Administration on or prior to December 31, 2019
- $50 million will be available upon TherapeuticsMD achieving $11 million in net revenues from IMVEXXY, BIJUVA and ANNOVERA for the fourth quarter of 2019
TherapeuticsMD anticipates that the TSSP term loan facility will close on or before May 10, 2019, subject to the satisfaction of certain customary conditions.
Borrowings under the TSSP term loan facility will accrue interest at three-month LIBOR plus 7.75%, subject to a LIBOR floor of 2.70%. Interest on amounts borrowed under the facility will be payable quarterly. The outstanding principal amount of the term loan facility will be payable in four equal quarterly installments beginning on June 30, 2023, with the term loan facility maturing on March 31, 2024.
“We are very pleased with the flexible terms of our new facility with TPG Sixth Street Partners,” said Robert G. Finizio, CEO of TherapeuticsMD. “This facility will allow us to continue our growth strategy as we focus on the commercial launch of BIJUVA and prepare for the launch of ANNOVERA later this year. This financing demonstrates the confidence that our new lenders have in our business and also further strengthens our balance sheet without any dilution in equity.”
TherapeuticsMD has notified its existing lender, MidCap Financial Trust, managed by Apollo Capital Management, that the company will be terminating its existing term loan credit and security agreement. A portion of the initial tranche of the new TSSP facility will be used to repay amounts outstanding under the company’s existing term loan credit and security agreement with MidCap Financial Trust.