Optinose, a pharmaceutical company focused on patients treated by ear, nose and throat (ENT) and allergy specialists, today reported that it has entered into a note purchase agreement for up to $150 million of senior secured notes with funds managed by Pharmakon Advisors, LP, the investment manager of the BioPharma Credit funds.

“The capital available under this facility has the potential to meaningfully extend our cash runway, and Pharmakon’s reputation of forming successful, long-term, relationships with growth-stage companies such as Optinose makes them a great financial partner for us,” commented Chief Financial Officer Keith Goldan. “Optinose is focused on growing XHANCE®, for which we recently achieved a third consecutive quarter of 50% or greater growth in prescriptions, and this substantial financing commitment allows our team to remain focused on building on that successful track record. In addition, I would like to thank the team from Athyrium for being a great partner during the initial launch phase for XHANCE, as the financial flexibility provided by that agreement was critically important to us.”

At closing of the agreement, Optinose issued $80 million of senior secured notes. An additional $30 million of notes will be issued by Optinose by February 15, 2020 subject to the achievement of minimum XHANCE revenues and certain other conditions. Two additional tranches of notes of $20 million each will be available to Optinose, at its option, in 2020 and 2021 subject to the achievement of minimum XHANCE revenues and certain other conditions. The notes will mature in September 2024. Important information with respect to this financing is set forth in a Form 8-K filed by the Company with the Securities and Exchange Commission on September 12, 2019.

Initial proceeds from this financing, were used to repay and retire the Company’s existing senior secured notes with Athyrium Opportunities III Acquisition LP.