Verona Pharma announces amended financing with Oaktree, OMERS

Verona Pharma (VRNA) has amended its existing strategic financing agreements by repaying the revenue interest purchase and sale agreement and increasing the debt facility to $450M on improved terms with funds managed by Oaktree Capital Management and OMERS Life Sciences announced in May 2024. The strategic financing arrangements were revised as follows: RIPSA: Repurchased the $100M obligation with reduced repayment fees. Term loan facility: Increased facility to $450M and borrowed $125M from an expanded Tranche C resulting in an aggregate of $250M outstanding; Reduced the interest rate from 11% to 9.7% with a further reduction to 9.35% upon achievement of certain sales milestones; Added a provision allowing Verona Pharma to secure a working capital revolving credit facility of up to $75M with a separate group.