Silicon Valley Bank provided a debt facility to Liquidia that provides up to $40 million in term loans, of which $20 million was funded at closing.
Liquidia initially entered a debt facility with Silicon Valley Bank in March 2021 that provided up to $20.5 million in term loans, of which $10.5 million has been funded to date.
Under the terms of the new debt facility, Silicon Valley Bank will make loans available in three tranches. Proceeds from the first tranche of $20 million were used to retire Liquidia’s existing term debt with Silicon Valley Bank and adds $9.5 million of cash to Liquidia’s balance sheet. The first tranche also provides the option of drawing an additional $5 million at Liquidia’s discretion through Dec. 31, 2022. A second tranche of $7.5 million is available to fund immediately upon receipt of final and unconditional approval for YUTREPIA (treprostinil) inhalation powder by Dec. 31, 2022. The third tranche of $7.5 million will be available through Aug. 31, 2023, upon generating trailing six-month net product sales of YUTREPIA of $27.5 million by June 30, 2023.
The debt facility will mature on Dec. 1, 2025, and will consist of interest-only payments through Dec. 31, 2023, unless the third tranche milestone is achieved, and then it will consist of interest-only payments through Dec. 31, 2024.
“We are very pleased to continue our relationship with SVB as we progress towards the potential final approval of YUTREPIA,” Michael Kaseta, CFO of Liquidia, said. “These initial funds will help support pre-commercial activity and other corporate purposes during 2022, while the additional tranches of debt provide non-dilutive capital at key milestones to ensure a successful launch of YUTREPIA. We expect that the combination of current cash on-hand, the net revenue from our treprostinil injection product offering and this new debt facility will allow us to execute on our current plans through a potential final approval [of] YUTREPIA and, if approval is received, at least the first phase of the YUTREPIA launch.”
“We are delighted to continue to support Liquidia in their pursuit of addressing unmet patient needs in the pharmaceutical industry,” Scott McCarty, director of life science and healthcare at Silicon Valley Bank, said. “Their investigational product, YUTREPIA, is a great example of what their PRINT Technology can accomplish and has the potential to play a significant role in treating PAH.”
