Liquidia Corporation Secures $20.5 Million Debt Facility with Silicon Valley Bank
March 02 2021 - 8:30AM
Liquidia Corporation (NASDAQ: LQDA) today announced the closing of
a debt facility on February 26, 2021, with Silicon Valley Bank,
which provides Liquidia with up to $20.5 million in term loans of
which the first $10.5 million was funded at closing.
Under the terms of the debt facility, Silicon Valley Bank will
make loans available in three tranches. Proceeds from the first
tranche of $10.5 million have been used to retire Liquidia’s
existing term debt with Pacific Western Bank and adds approximately
$1.0 million to Liquidia’s balance sheet. A second tranche of $5.0
million is available upon the Food and Drug Administration (FDA)
granting Liquidia tentative approval for LIQ861 by June 30, 2022,
and the third tranche of $5.0 million is available upon receipt of
final and unconditional approval for LIQ861 by December 31, 2022.
The debt facility will mature on September 1, 2024 and will consist
of interest-only payments through March 31, 2023.
Michael Kaseta, Chief Financial Officer of Liquidia, said: “We
are very pleased to secure this debt facility and to work with
Silicon Valley Bank, a great partner who can continue to grow with
us. The interest-only payments on the first tranche will reduce our
cash outlay by $5.5 million in 2021 and $4.5 million in 2022. The
additional tranches of debt provide non-dilutive capital at key
moments through the course of 2022 as we prepare for LIQ861
commercialization.”
"Liquidia is driving important advancements in the
pharmaceutical industry through its innovative PRINT technology,"
said Scott McCarty, Director of Life Science and Healthcare at
Silicon Valley Bank. "We are proud to support the Liquidia team
with this debt facility as the company advances the development and
commercialization of LIQ861 and the Treprostinil Injection."
About Liquidia CorporationLiquidia
Corporation operates through the company’s subsidiaries, Liquidia
Technologies, Inc. and Liquidia PAH, LLC. The Company, through
Liquidia Technologies, Inc., is a biopharmaceutical company focused
on the development and commercialization of products in pulmonary
arterial hypertension and other applications of its PRINT
technology. Liquidia is developing two product candidates: LIQ861,
an inhaled dry powder formulation of treprostinil for the treatment
of pulmonary arterial hypertension (PAH), and LIQ865, an
injectable, sustained-release formulation of bupivacaine for the
management of local post-operative pain for three to five days
after a procedure. Liquidia PAH, LLC provides commercialization for
rare disease pharmaceutical products, such as Treprostinil
Injection, Sandoz Inc.’s first-to-file, generic treprostinil for
PAH.
Liquidia Corporation is headquartered in Research
Triangle Park, NC. For more information, please
visit www.liquidia.com.
About Silicon Valley BankFor more than 35
years, Silicon Valley Bank (SVB) has helped innovative companies
and their investors move bold ideas forward, fast. SVB provides
targeted financial services and expertise through its offices in
innovation centers around the world. With commercial, international
and private banking services, SVB helps address the unique needs of
innovators. Learn more at svb.com.
Contact InformationMedia &
Investors:Jason AdairVice President, Corporate Development
and Strategy919.328.4400jason.adair@liquidia.com
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