Xeris Biopharma Holdings entered into an amended and restated senior secured term loan agreement (“debt facility”) with funds managed by Hayfin Capital Management LLP to provide Xeris $200.0 million of capital at close and the ability to draw down another $15.2 million to redeem Xeris’ outstanding 5.00% convertible senior notes due 2025.
“We are very pleased with the outcome of this refinancing transaction with Hayfin. This upsized facility, along with cash generation from our existing products and partnerships, allows us greater flexibility to continue to invest in the growth of our business. In addition to the new capital, we reduced our borrowing interest rate by 2.05% per year, which validates the strong creditworthiness of the company,” said Steven M. Pieper, Xeris’ Chief Financial Officer. “Hayfin has proven to be a committed partner that believes in our strategy and ability to execute and is willing to further support our growing enterprise.”
Under the terms of the new debt facility, Xeris drew down $200.0 million on the closing date to repay its existing term loan of $150.0 million with Hayfin, plus associated interest and fees, which resulted in an increase of approximately $35 million to Xeris’ cash balance. Net proceeds are for working capital and general corporate purposes. An additional $15.2 million of the debt facility is available to redeem, if needed, Xeris’ outstanding 5.00% convertible senior notes due mid-2025. The maturity of the debt facility is five (5) years from the closing date. Amounts borrowed under the debt facility bear interest at an annual rate equal to 6.95% plus the greater of (i) CME Term SOFR, and (ii) two percent (2.00%) per annum. Xeris is entitled to make interest-only payments on a quarterly basis until the maturity date or earlier prepayment of the loan. During the term of the loan, Xeris is required to maintain certain minimum liquidity and revenue requirements.
Andrew Merrill, Managing Director of Healthcare at Hayfin said, “We are pleased to continue to invest in Xeris through this new senior secured loan. Since our initial engagement two years ago, Xeris has demonstrated its ability to develop and bring to market products with clear, valuable benefits to patients, which also garner strong market adoption. These compelling attributes are hallmarks of our lending strategy and give us confidence to continue supporting Xeris’ strong growth.”
Evercore acted as sole financial advisor to Xeris on this transaction.