Apellis refinances existing debt with up to $475M credit facility

Apellis Pharmaceuticals has entered into a non-dilutive, senior secured credit facility with Sixth Street of up to $475 million, with approximately $375 million funded at close. Apellis can draw down an additional $100 million under the facility at the company’s option prior to September 2025, subject to satisfaction of certain conditions. Additionally, the Sixth Street agreement also permits Apellis to access $100 million through a separate third-party working capital facility. Apellis used the majority of the net proceeds to buy out the existing SFJ Pharmaceuticals development liability for approximately $326 million. This buy out eliminates $366 million in payments owed to SFJ through 2027, including approximately $200 million through 2025. Net proceeds to Apellis at closing will be approximately $32 million following the buy out of the SFJ Pharmaceuticals development liability, and fees and expenses associated with the transaction. The new senior secured credit facility matures on May 13, 2030, and bears interest at an annual rate equal to the 3-month Secured Overnight Financing Rate + 5.75% with certain additional fees and prepayment terms. There are no scheduled amortization payments during the term of the facility, with all principal due on the maturity date. The credit facility obligations are secured by substantially all assets of Apellis, and the credit facility includes certain affirmative and negative covenants consistent with a facility of this type. As of March 31, 2024, Apellis had cash and cash equivalents of $325.9 million.