Evolus, a performance beauty company, extended the expiration date of the second undrawn tranche under its existing term loan financing facility with investment funds managed by Pharmakon Advisors to Dec. 31, 2023.
“Supported by our unique business strategy and focus on the fast-growing millennial demographic, Evolus is continuing to gain market share and remains on track for a strong finish to 2022,” David Moatazedi, president and CEO of Evolus, said. “We remain confident in our ability to achieve cash flow breakeven with our existing cash balance as we explore opportunities to broaden our product portfolio. We are very pleased that Pharmakon supports our vision to become a leading, multi-product aesthetics company by extending the availability of long-term financing.”
“We are proud to financially partner with Evolus as it advances its mission and capitalizes on the underpenetrated aesthetic neurotoxin market,” Pedro Gonzalez de Cosio, CEO of Pharmakon Advisors, said. “We remain confident that the company’s highly experienced management team will continue to grow its brand and build a leading aesthetics industry franchise.”
The original $125 million term loan facility included two tranches: the first for $75 million that was drawn in full in 2021, and a second undrawn tranche of $50 million that, prior to the extension, was set to expire on Dec. 31, 2022. Except for the new expiration date, all other terms of the facility remain unchanged. Those include:
- A maturity on the six-year anniversary of the closing date of the first tranche
- Interest-only payments required during the first 36 months after which ratable principal payments commence for the remaining 36 months
- Interest paid quarterly using the 3-month LIBOR (with a 1% floor) plus 8.5% per annum.
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