Evolus, a performance beauty company, entered into a $125 million term loan financing facility with funds managed by Pharmakon Advisors, L.P.

The term loan facility will be available to Evolus under the following terms:

• A senior secured term loan of up to $125 million in two tranches. Proceeds of the facility will be used for general corporate purposes and working capital. A portion of the proceeds may also be used for potential strategic transactions.
• $75 million will be drawn upon execution of the agreement. At its option, Evolus may draw up to an additional $50 million before December 31, 2022. This second tranche is available with no additional performance obligations or financial covenants.
• The facility will mature in six years from funding. Interest-only payments will be required during the first 39 months after which ratable principal payments commence for the remaining 33 months. Interest will be paid quarterly using the 3-month LIBOR (with a 1% floor) plus 8.5% per annum.

“Supported by our unique business strategy and focus on the fast-growing millennial demographic, Evolus is continuing to gain market share in the aesthetic neurotoxin industry,” said David Moatazedi, Evolus’ President and Chief Executive Officer. “This new credit facility greatly strengthens our capital structure, and we expect the initial tranche to eliminate our near-term equity financing overhang by providing us with a flexible source of funding that will carry us beyond cash flow breakeven. We are very pleased to be working with a long-term financing partner who embraces our strategy to become a leading, multi-product aesthetics company.”

SVB Leerink acted as exclusive financial advisor to Evolus.