Business
Xeris Announces $150M Senior Secured Term Loan Facility With Hayfin Capital
$100M drawn down at close; repayment of existing term loan; near-term access to an additional $50M Provides significant operating and financial flexibility
About this update from Xeris Biopharma Holdings, Inc.
[{"type":"text","content":"\n$100M drawn down at close; repayment of existing term loan; near-term access to an additional $50M\n\nProvides significant operating and financial flexibility\n\nCash flow breakeven expected by year-end 2023\n\n CHICAGO--(BUSINESS WIRE)--\nXeris Biopharma Holdings, Inc. (“Xeris” or “the Company”) (Nasdaq: XERS), a biopharmaceutical company developing and commercializing unique therapies for patient populations in endocrinology, neurology, and gastroenterology, today announced it has entered into a senior secured term loan agreement (“debt facility”) with funds managed by Hayfin Capital Management LLP (“Hayfin”) to provide Xeris with up to a total of $150 million of capital.\n\n“We are very pleased to be partnering with Hayfin. This debt facility increases our financial strength and provides us with substantial resources by securing access to non-dilutive capital on attractive terms without over encumbering our balance sheet,” said Steven Pieper, Xeris’ Chief Financial Officer. “Together with the recent equity financing, which closed in January, Xeris has now added approximately $80 million of cash to the greater than $102 million of cash and investments already on our balance sheet at year-end 2021.”\n\nMr. Pieper continued, “This capital base and, if needed, the additional $50 million available for the next 12 months, provides the Company with significant operating flexibility to drive our rapidly growing commercial business as currently constructed to cash flow breakeven by year-end 2023, and thereafter produce increasing operating cashflow.”\n\nUnder the terms of the debt facility, Xeris drew down $100 million on the closing date to repay its existing term loan of $43.5 million with Oxford Finance LLC and Silicon Valley Bank, and the net proceeds will provide additional working capital to fund the Company’s business plan. An additional $50 million of the debt facility is available during the 12-month period following the closing date, which may be drawn by Xeris in up to three draws of no less than $10 million each, contingent upon, among other things, continued compliance with the financial covenants contained in the loan agreement. The maturity of the debt facility is five (5) years from the closing date, provided that such maturity date will be January 15, 2025 in the event that Xeris’ 5.0% outstanding convertible notes ...