Zevra Therapeutics refinances existing debt with $100M in committed capital

Zevra Therapeutics entered into a new credit facility provided by leading biotech investors. Led by Perceptive Advisors and Healthcare Royalty, the new credit facility provides up to $100M in committed capital in three tranches: an initial draw of $60M at closing, a second tranche of up to $20M available until October 5, 2025, and a third tranche of up to $20M which becomes available upon approval of arimoclomol, the Company’s product candidate for the treatment of Niemann Pick disease Type C, in each case subject to certain terms and conditions. As part of this transaction, the Company has retired its combined existing debt of approximately $43.1M. Net proceeds from the initial $60M draw, after repayment of the existing debt, original issue discount, and fees and expenses associated with this transaction, are approximately $14.0M. The new five-year credit facility bears interest at the 3-month Secured Overnight Financing Rate, plus 7.00% per annum, which all-in interest rate is currently 12.33% per annum. Zevra has the option to pay up to 25% of the interest on principal amounts outstanding in-kind through and including March 31, 2026, subject to certain terms and conditions. The facility is interest-only throughout the five-year term of the facility, with all outstanding principal due on the maturity date of April 5, 2029, and includes certain customary covenants and obligations.