Relypsa, Inc., a biopharmaceutical company, today announced the closing of $150 million in aggregate principal amount of senior secured term loans (the "Loans"), led by funds advised by Athyrium Capital Management and joined by HealthCare Royalty Partners. The Loans are senior secured obligations of Relypsa and will mature on April 27, 2022, unless earlier prepaid or repaid in accordance with their terms prior to such date. The Loans bear interest at a rate of 11.5 percent per year, to be paid quarterly beginning June 15, 2016 and include an interest-only period of 30 months, which may be extended up to 48 months upon meeting certain conditions.
Relypsa intends to use approximately $17 million of the net proceeds to repay all outstanding obligations under its loan and security agreement, as amended, with Oxford Finance LLC and Silicon Valley Bank. Relypsa intends to use the remaining net proceeds to fund ongoing commercialization of Veltassa in the United States and for working capital and general corporate purposes.
“We are pleased to announce a debt financing that enhances our cash position as we focus on developing the hyperkalemia market and bringing Veltassa to patients in need,” said Kristine M. Ball, chief financial officer of Relypsa.
“We are excited to partner with Relypsa to support the ongoing launch of Veltassa,” said Laurent D. Hermouet, partner, Athyrium Capital Management. “Veltassa is the first new medicine in more than 50 years for millions of people with hyperkalemia, and we believe Relypsa has the potential to unlock significant long-term value.”
Relypsa, Inc. is a biopharmaceutical company focused on the discovery, development and commercialization of polymeric medicines for patients with conditions that are often overlooked and undertreated and can be addressed in the gastrointestinal tract. The Company’s first medicine, Veltassa® (patiromer) for oral suspension, was developed based on Relypsa’s rich legacy in polymer science. Veltassa is approved in the United States for the treatment of hyperkalemia. Veltassa has intellectual property protection until 2030 in the United States and 2029 in the European Union.
Athyrium Capital Management, LP ("Athyrium") is a specialized asset management company formed in 2008 to focus on investment opportunities in the global healthcare sector. As of March 31, 2016, Athyrium had over $1.7 billion of assets under management.
HealthCare Royalty Partners (“HCRP”) is a global healthcare investment firm focused on investing primarily in commercial stage healthcare product assets. HCRP has raised over $3 billion in committed capital and is headquartered in Stamford, CT.