Tricida entered into a debt facility with Hercules Capital. The total amount of the debt facility is $125 million of which $100 million will be available for drawdown at Tricida’s option subject to the achievement of certain milestones.
Under the terms of the debt facility, $25 million will be available for drawdown until December 31, 2022, subject to the announcement of positive data from the VALOR-CKD trial. An additional $25 million will be available for drawdown until the earlier of ten business days following the filing of the NDA for veverimer and September 15, 2023. An additional $50 million will be available for drawdown until the earlier of ten business days following the FDA approval of veverimer and February 15, 2024. An additional $25 million may be available for drawdown through December 15, 2024, subject to the approval of the Hercules investment committee.
Under the Loan Agreement, the loans bear interest at a floating per annum interest rate equal to the greater of either 8.75% or the lesser of 8.75% plus the prime rate as reported in The Wall Street Journal minus 6.25% and 10.25%.
The loan repayment schedule provides for interest only payments until August 1, 2024. The interest only period date may be deferred to November 1, 2026, following the FDA approval of veverimer. The final maturity date for the Loan Agreement is November 1, 2025. Subject to meeting certain conditions the final maturity date may be extended up to an additional two years.
“As we prepare to report the topline results from the VALOR-CKD renal outcomes trial this month, we want to ensure we are positioned both financially and strategically to move toward a potential NDA resubmission, potential FDA approval and subsequent commercialization of veverimer,” said Geoff Parker, Chief Operating Officer and Chief Financial Officer of Tricida. “This debt facility provides us with additional flexibility in our future financing plans.”
“Hercules is pleased to enter into this financing partnership with Tricida at this important stage as it continues to advance veverimer to address a significant unmet medical need,” said Scott Bluestein, Chief Executive Officer and Chief Investment Officer of Hercules. “This structured investment in Tricida provides the Company with additional non-dilutive capital as it continues to develop veverimer, which has the potential to address a significant unmet medical need in the treatment of patients with metabolic acidosis and CKD. We are excited to once again be partnering with the Tricida management team.”