Liquidia Corporation closed a debt facility on February 26, 2021, with Silicon Valley Bank, which provides Liquidia with up to $20.5 million in term loans of which the first $10.5 million was funded at closing.

Under the terms of the debt facility, Silicon Valley Bank will make loans available in three tranches. Proceeds from the first tranche of $10.5 million have been used to retire Liquidia’s existing term debt with Pacific Western Bank and adds approximately $1.0 million to Liquidia’s balance sheet. A second tranche of $5.0 million is available upon the Food and Drug Administration (FDA) granting Liquidia tentative approval for LIQ861 by June 30, 2022, and the third tranche of $5.0 million is available upon receipt of final and unconditional approval for LIQ861 by December 31, 2022. The debt facility will mature on September 1, 2024 and will consist of interest-only payments through March 31, 2023.

Michael Kaseta, Chief Financial Officer of Liquidia, said: “We are very pleased to secure this debt facility and to work with Silicon Valley Bank, a great partner who can continue to grow with us. The interest-only payments on the first tranche will reduce our cash outlay by $5.5 million in 2021 and $4.5 million in 2022. The additional tranches of debt provide non-dilutive capital at key moments through the course of 2022 as we prepare for LIQ861 commercialization.”

"Liquidia is driving important advancements in the pharmaceutical industry through its innovative PRINT technology," said Scott McCarty, Director of Life Science and Healthcare at Silicon Valley Bank. "We are proud to support the Liquidia team with this debt facility as the company advances the development and commercialization of LIQ861 and the Treprostinil Injection."