Verona Pharma Announces Amended Strategic Financing with Oaktree and OMERS
Verona Pharma (VRNA) has amended its strategic financing agreements with Oaktree Capital Management and OMERS Life Sciences, marking significant changes to its capital structure. The company has:
- Repurchased the Revenue Interest Purchase and Sale Agreement (RIPSA) $100 million obligation
- Increased its term loan facility to $450 million with improved terms
- Borrowed $125 million from an expanded Tranche C, bringing total outstanding debt to $250 million
- Reduced interest rates from 11% to 9.7%, with potential further reduction to 9.35% upon meeting sales milestones
- Gained ability to secure up to $75 million in working capital revolving credit
The refinancing reflects the successful launch and growing prescriptions of Ohtuvayre™ (ensifentrine), their COPD maintenance treatment, providing increased financial flexibility and simplified balance sheet structure.
Verona Pharma (VRNA) ha modificato i suoi accordi di finanziamento strategico con Oaktree Capital Management e OMERS Life Sciences, segnando cambiamenti significativi nella sua struttura di capitale. La società ha:
- Riacquistato l'obbligazione del Revenue Interest Purchase and Sale Agreement (RIPSA) da 100 milioni di dollari
- Aumentato la sua linea di prestito a 450 milioni di dollari con condizioni migliorate
- Preso in prestito 125 milioni di dollari da una Tranche C ampliata, portando il debito totale a 250 milioni di dollari
- Ridotto i tassi d'interesse dall'11% al 9,7%, con una potenziale ulteriore riduzione al 9,35% al raggiungimento di obiettivi di vendita
- Ottenuto la possibilità di garantire fino a 75 milioni di dollari in credito rotativo per il capitale circolante
Il rifinanziamento riflette il lancio di successo e l'aumento delle prescrizioni di Ohtuvayre™ (ensifentrina), il loro trattamento di mantenimento per la BPCO, fornendo maggiore flessibilità finanziaria e una struttura di bilancio semplificata.
Verona Pharma (VRNA) ha modificado sus acuerdos de financiamiento estratégico con Oaktree Capital Management y OMERS Life Sciences, marcando cambios significativos en su estructura de capital. La compañía ha:
- Recomprado la obligación del Revenue Interest Purchase and Sale Agreement (RIPSA) de 100 millones de dólares
- Aumentado su línea de préstamo a 450 millones de dólares con condiciones mejoradas
- Prestado 125 millones de dólares de una Tranche C ampliada, llevando la deuda total a 250 millones de dólares
- Reducido las tasas de interés del 11% al 9.7%, con una posible reducción adicional al 9.35% al cumplir con hitos de ventas
- Obtenido la capacidad de asegurar hasta 75 millones de dólares en crédito rotativo para capital de trabajo
El refinanciamiento refleja el exitoso lanzamiento y el aumento de recetas de Ohtuvayre™ (ensifentrina), su tratamiento de mantenimiento para la EPOC, proporcionando mayor flexibilidad financiera y una estructura de balance simplificada.
베로나 파마 (VRNA)는 오크트리 캐피탈 매니지먼트 및 OMERS 생명과학과의 전략적 금융 계약을 수정하여 자본 구조에 중대한 변화를 가져왔습니다. 회사는:
- 1억 달러의 수익 이자 구매 및 판매 계약(RIPSA) 의무를 재구매했습니다.
- 조건을 개선하여 대출 시설을 4억 5천만 달러로 증가시켰습니다.
- 확대된 C 트랜치에서 1억 2천5백만 달러를 차입하여 총 미지급 부채를 2억 5천만 달러로 늘렸습니다.
- 이자율을 11%에서 9.7%로 낮추었으며, 판매 이정표를 충족할 경우 9.35%로 추가 감소할 가능성이 있습니다.
- 최대 7천5백만 달러의 운전 자본 회전 신용을 확보할 수 있는 능력을 얻었습니다.
이 재융자는 COPD 유지 치료제인 Ohtuvayre™ (엔시펜트린)의 성공적인 출시와 증가하는 처방을 반영하여 재정적 유연성을 높이고 대차대조표 구조를 단순화합니다.
Verona Pharma (VRNA) a modifié ses accords de financement stratégique avec Oaktree Capital Management et OMERS Life Sciences, marquant des changements significatifs dans sa structure de capital. L'entreprise a :
- Racheté l'obligation du Revenue Interest Purchase and Sale Agreement (RIPSA) de 100 millions de dollars
- Augmenté sa ligne de crédit à 450 millions de dollars avec des conditions améliorées
- Emprunté 125 millions de dollars d'une tranche C élargie, portant la dette totale à 250 millions de dollars
- Réduit les taux d'intérêt de 11 % à 9,7 %, avec une réduction potentielle supplémentaire à 9,35 % en atteignant des objectifs de vente
- Obtenu la capacité de sécuriser jusqu'à 75 millions de dollars de crédit revolving pour le fonds de roulement
Le refinancement reflète le lancement réussi et l'augmentation des prescriptions d'Ohtuvayre™ (ensifentrine), leur traitement de maintien pour la BPCO, offrant une flexibilité financière accrue et une structure de bilan simplifiée.
Verona Pharma (VRNA) hat seine strategischen Finanzierungsvereinbarungen mit Oaktree Capital Management und OMERS Life Sciences geändert, was zu bedeutenden Veränderungen in seiner Kapitalstruktur führt. Das Unternehmen hat:
- Die Verpflichtung aus dem Revenue Interest Purchase and Sale Agreement (RIPSA) über 100 Millionen Dollar zurückgekauft
- Seine Kreditlinie auf 450 Millionen Dollar mit verbesserten Bedingungen erhöht
- 125 Millionen Dollar aus einer erweiterten Tranche C aufgenommen, was die gesamte ausstehende Schuldenlast auf 250 Millionen Dollar erhöht
- Die Zinssätze von 11% auf 9,7% gesenkt, mit der Möglichkeit einer weiteren Senkung auf 9,35% bei Erreichung von Verkaufsmeilensteinen
- Die Fähigkeit erlangt, bis zu 75 Millionen Dollar an revolvierendem Betriebskapital zu sichern
Die Refinanzierung spiegelt den erfolgreichen Start und die wachsenden Verschreibungen von Ohtuvayre™ (Ensifentrin) wider, ihrer COPD-Erhaltungstherapie, und bietet erhöhte finanzielle Flexibilität sowie eine vereinfachte Bilanzstruktur.
- Reduced interest rates from 11% to 9.7% with potential further reduction to 9.35%
- Increased financial flexibility with $450M term loan facility
- Access to additional $200M subject to conditions
- Growing prescription rates for Ohtuvayre
- Ability to secure up to $75M in working capital revolving credit
- Increased total debt facility to $450M
- Outstanding debt of $250M after new borrowing
Insights
Verona Pharma's amended financing deal with Oaktree and OMERS represents a significant improvement in the company's capital structure. By repurchasing the revenue interest purchase and sale agreement (RIPSA), Verona eliminates future revenue-sharing obligations, allowing it to retain 100% of Ohtuvayre sales revenue going forward - a clear vote of confidence in the commercial trajectory of their COPD treatment.
The reduced interest rate (from 11% to 9.7%, with potential further reduction to 9.35%) on their now-expanded
The amendment provides three strategic advantages: (1) simplified balance sheet without revenue-sharing obligations, (2) lower debt servicing costs, and (3) enhanced financial flexibility with access to up to
Most telling is the willingness of sophisticated healthcare investors like Oaktree and OMERS to offer improved terms - a strong external validation of Ohtuvayre's commercial performance. The transaction signals Verona's transition from a development-stage company to a commercial entity with sufficient revenue visibility to support more favorable financing arrangements and full revenue retention.
RIPSA interests repurchased
Term loan facility increased to
Access to up to an additional
LONDON and RALEIGH, N.C., March 28, 2025 (GLOBE NEWSWIRE) -- Verona Pharma plc (Nasdaq: VRNA) (“Verona Pharma” or the “Company”), a biopharmaceutical company focused on respiratory diseases, has amended its existing strategic financing agreements by repaying the revenue interest purchase and sale agreement (“RIPSA”) and increasing the debt facility to
“We are pleased that Oaktree and OMERS recognize the ongoing success of the Ohtuvayre™ (ensifentrine) launch and continued growth of Ohtuvayre prescriptions. This growth has allowed us to terminate the RIPSA and amend our term loan facility with Oaktree and OMERS, increasing our financial flexibility and simplifying our balance sheet,” said David Zaccardelli, Pharm. D., President and Chief Executive Officer. “We continue to have access to up to
“We have been very impressed by the US launch of Ohtuvayre as a novel maintenance treatment for COPD,” commented Aman Kumar, Co-Portfolio Manager for Oaktree’s Life Sciences Lending platform. “We are delighted to continue our partnership with the Company and look forward to supporting them as they expand access to this important therapy for COPD patients globally.”
The strategic financing arrangements were revised as follows:
RIPSA
- Repurchased the
$100 million obligation with reduced repayment fees
Term loan facility
- Increased facility to
$450 million and borrowed$125 million from an expanded Tranche C resulting in an aggregate of$250 million outstanding - Reduced the interest rate from
11% to9.7% with a further reduction to9.35% upon achievement of certain sales milestones - Added a provision allowing Verona Pharma to secure a working capital revolving credit facility of up to
$75 million with a separate group
For further information please contact:
| Verona Pharma plc | Tel: +1-844-341-9901 |
| Victoria Stewart, Senior Director of Investor Relations and Communications | IR@veronapharma.com |
| Argot Partners US Investor Enquiries | Tel: +1-212-600-1902 verona@argotpartners.com |
| Ten Bridge Communications International / US Media Enquiries | Tel: +1-781-316-4424 tbcverona@tenbridgecommunications.com |
| Wendy Ryan |
About Verona Pharma
Verona Pharma is a biopharmaceutical company focused on developing and commercializing innovative therapies for the treatment of chronic respiratory diseases with significant unmet medical needs. Ohtuvayre™ (ensifentrine) is the Company’s first commercial product and the first inhaled therapy for the maintenance treatment of COPD that combines bronchodilator and non-steroidal anti-inflammatory activities in one molecule. Ensifentrine has potential applications in non-cystic fibrosis bronchiectasis, cystic fibrosis, asthma and other respiratory diseases. For more information, please visit www.veronapharma.com.
About Oaktree
Oaktree is a leader among global investment managers specializing in alternative investments, with
About OMERS Life Sciences and OMERS
OMERS Life Sciences provides royalty financings and other non-dilutive solutions to biopharma companies and academic institutions, supporting their efforts to address unmet medical needs and improve the quality of life of patients around the world.
OMERS is a jointly sponsored, defined benefit pension plan, with 1,000 participating employers ranging from large cities to local agencies, and almost 640,000 active, deferred and retired members. Our members include union and non-union employees of municipalities, school boards, local boards, transit systems, electrical utilities, emergency services and children’s aid societies across Ontario. OMERS teams work in Toronto, London, New York, Amsterdam, Luxembourg, Singapore, Sydney and other major cities across North America and Europe – serving members and employers, and originating and managing a diversified portfolio of high-quality investments in government bonds, public and private credit, public and private equities, infrastructure and real estate.
Forward-Looking Statements
This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, as amended. All statements contained in this press release other than statements of historical fact should be considered forward-looking statements. Words such as “anticipate,” “believe,” “plan,” “expect,” “intend,” “may,” “potential,” “prepare,” “possible” and similar words and expressions are intended to identify forward-looking statements. These forward-looking statements include, but are not limited to, statements regarding the amounts expected to become available and conditions under the term loan facility, the potential for us to secure a working capital revolving credit facility of up to
These forward-looking statements are based on management's current expectations. These statements are neither promises nor guarantees, but involve known and unknown risks, uncertainties and other important factors that may cause our actual results, performance or achievements to be materially different from our expectations expressed or implied by the forward-looking statements, including, but not limited to: risks related to our limited operating history; our need for additional funding to complete development and commercialization of Ohtuvayre which may not be available and which may force us to delay, reduce or eliminate our development or commercialization efforts; our reliance on the success of Ohtuvayre, the terms of our credit agreement and the revenue interest purchase and sale agreement ("RIPSA”) place restrictions on our operating and financial flexibility, and if we fail to comply with certain covenants in the RIPSA, our results of operations and financial condition may be harmed; the efficacy of Ohtuvayre compared to competing drugs; and the other important factors discussed under the caption “Risk Factors” in our Annual Report on Form 10-K for the period ended December 31, 2024 filed with the Securities and Exchange Commission (“SEC”) on February 27, 2025, as such factors may be updated from time to time in our other filings with the SEC. We disclaim any obligation to update or revise any forward-looking statement contained in this press release, even if subsequent events cause our views to change, except as required under applicable law.
FAQ
What are the key terms of VRNA's amended financing agreement with Oaktree and OMERS?
How much has VRNA reduced its interest rates in the March 2025 refinancing?
What is the total outstanding debt for VRNA after the March 2025 refinancing?
How much additional working capital can VRNA secure under the new agreement?
