Press release
Arrowhead Pharmaceuticals Announces $500 Million Strategic Financing Facility with Sixth Street
- Balance sheet strengthened with long-term, non-dilutive capital - $400 million funded at close with the potential to draw an additional $100 million -
About this update from Arrowhead Pharmaceuticals, Inc.
[{"type":"text","content":"\n- Balance sheet strengthened with long-term, non-dilutive capital\n- $400 million funded at close with the potential to draw an additional $100 million\n- Immediately enhances Arrowhead’s ability to advance plozasiran towards a 2025 launch\n- Expands possibilities to fund innovation and growth across Arrowhead’s robust and diverse pipeline of RNAi therapeutics\n\n\n PASADENA, Calif.--(BUSINESS WIRE)--\nArrowhead Pharmaceuticals, Inc. (NASDAQ: ARWR) today announced that it has entered into a strategic financing agreement with Sixth Street for significant, long-term, non-dilutive capital to fund innovation and growth opportunities across Arrowhead’s robust and diverse pipeline of RNAi therapeutics. The $500 million senior secured credit facility includes $400 million funded at close with an additional $100 million available at Arrowhead’s option, subject to mutual agreement between Sixth Street and Arrowhead, during the seven-year term of the agreement.\n\n\n“This deal and its favorable structure and economics allow us to confidently build our commercial capabilities to support our first commercial launch in 2025, provided we receive regulatory approval for plozasiran in familial chylomicronemia syndrome. This transaction is non-dilutive and has an attractive repayment structure, which largely aligns outflows with future inflows, allowing us to keep more cash in the business at a critical time of growth. In addition, because of the flexible repayment mechanics during the seven-year term, it has important risk sharing features. Not only does the facility allow us to support plozasiran as we move toward a commercial launch, it also expands our ability to fund growth and innovation across our pipeline,” said Christopher Anzalone, Ph.D., President and CEO at Arrowhead.\n\n\nJeff Pootoolal, Partner at Sixth Street and Michael Reslinski, Managing Director added, \"Arrowhead Pharmaceuticals has an impressive platform technology, attractive pipeline assets with promising commercial opportunities, and multiple partnerships maturing toward commercialization. We are pleased to utilize our firm’s scale, expertise and flexibility to help Arrowhead meet its strategic objectives through this innovative financing solution, and we hope to continue strengthening our relationship with the company as it rapidly becomes one of the most exciting emer...