Evolus, Inc. (NASDAQ: EOLS), a performance beauty company with a focus on building an aesthetic portfolio of consumer brands, announced it has entered into an amended and restated credit facility, replacing its existing $125 million credit agreement with a new $250 million credit facility with funds managed by Pharmakon Advisors, LP.
Highlights of the new facility include:
- Lowered Interest Rate: Reduced borrowing cost by 350 basis points (bps) based on current interest rates. The facility will mature five years from the funding date. Interest will be paid quarterly using the 3-month SOFR plus 5.00% per annum.
- Improved Structure & Financial Flexibility: Converted from an amortizing structure to a bullet maturity payment, with significantly reduced pre-payment fees, avoided any pre-payment fees from the existing facility, and additional consideration of 1% of the drawn value for the new facility, making it a cost-effective agreement.
- Increased Capital Availability: Added $100 Million of discretionary incremental capacity with a senior secured term loan of up to $250 million in three tranches, with $150 million being drawn upon the execution of the agreement. At its discretion, Evolus may draw up to two additional tranches of $50 million each through December 31, 2026. These second and third tranches are available with no additional performance conditions or financial covenants.
“As a multi-product performance beauty company, Evolus continues to outperform the market and we remain focused on delivering exceptional results while creating long-term value for our shareholders,” said David Moatazedi, President and Chief Executive Officer of Evolus. “Although already fully funded to sustained profitability and cash generation, this refinancing improves current cash generation and gives access to additional capacity with minimal fees.”
As a result of entering into this refinancing, which matures five years from funding, Evolus will no longer be required to make principal payments in 2026. The refinancing significantly reduces interest expense and enhances financial flexibility and access to capital as compared to the previous agreement with more favorable terms overall. It reinforces Evolus’ ability to generate cash and manage its capital structure efficiently while providing additional working capital flexibility to support continued commercial momentum and strategic initiatives.
“Our partnership with Pharmakon over the past three years has been key to supporting Evolus’ growth and we are happy to continue this incredibly productive relationship,” said Sandra Beaver, Chief Financial Officer of Evolus. “We are also very pleased to be able to execute this non-dilutive transaction in today’s market environment with Pharmakon. Through a competitive process, we secured favorable terms with our current lender, eliminated exit fees from the existing facility, and closed the refinancing in a very efficient manner.”
A Form 8-K outlining the full terms of the new credit facility was filed today with the Securities and Exchange Commission. Leerink Partners acted as exclusive financial advisor to Evolus.
