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Silicon Valley Bank Provides $45MM Debt Refinancing to EyePoint Pharmaceuticals

March 10, 2022, 07:51 AM
Filed Under: Pharmaceuticals

EyePoint Pharmaceuticals entered into a loan agreement providing for senior secured credit facilities in the aggregate amount of $45 million with Silicon Valley Bank to replace its existing credit facility with CRG Servicing LLC. Under the terms of the new agreement, a $30 million term loan facility and an asset-based revolving credit facility of up to $15 million will be utilized to replace the existing approximately $40.5 million of obligations under the existing CRG credit facility. The new facility represents a significant improvement in economic terms and reduces the loan interest rate from 12.5% to a blended rate of approximately 5%, resulting in an estimated $2.8 million of annualized interest savings.

The Silicon Valley Bank agreement provides for:

  • A term loan facility of $30 million accruing interest at the greater of (i) the Wall Street Journal prime rate plus 2.25% and (ii) 5.50%. The term loan facility will only require interest payments for the initial two years of the facility; and
  • An asset-based revolving credit facility of up to $15 million accruing interest at the Wall Street Journal prime rate (currently 3.25%). Availability under the revolving credit facility will be limited by a borrowing base valuation of the Company’s accounts receivable.

“We are very pleased to enter into the new loan agreement with Silicon Valley Bank and replace our existing credit facility with improved economic terms. After strong execution in 2021, we ended the year with over $210 million of cash and investments, positioning EyePoint for these new credit facilities and further improving our balance sheet,” said George O. Elston, Chief Financial Officer of EyePoint Pharmaceuticals. “We are grateful for the support of our partners at CRG and we look forward to continued execution of our plan to meet near-term milestones and drive shareholder value.”

"We are delighted to support EyePoint in their pursuit of helping patients with serious eye disorders facing significant unmet need,” said Lauren Cole, Head of East Coast Biotech Credit Solutions at Silicon Valley Bank. “Their pipeline candidate, EYP-1901, a potential six-month intravitreal treatment targeting wet age-related macular degeneration, is a great example of what their proprietary Durasert® technology may accomplish."

The material terms of the new credit facility with Silicon Valley Bank will be disclosed in the Company’s Annual Report on Form 10-K expected to be filed with the Securities and Exchange Commission on or about March 11, 2022.

As of December 31, 2021, the Company had $211.6 million in cash and investments, including over $230 million in proceeds from two successful follow-on equity offerings during 2021.

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