TherapeuticsMD Signs Binding Commitment Letter for $300 Million Non-Dilutive Term Loan Financing Facility with TPG Sixth Stre...
April 17 2019 - 7:05AM
Business Wire
Leading Healthcare Investor Will Provide
TherapeuticsMD with Strategic Growth Capital
Additional Non-Dilutive Funding Will Support
the Launches of BIJUVATM and ANNOVERATM
TherapeuticsMD, Inc. (NASDAQ:TXMD), an innovative, leading
women’s healthcare company, today announced that it has signed a
binding commitment letter for a fully-negotiated $300 million
non-dilutive secured term loan financing facility with TPG Sixth
Street Partners (“TSSP”), the global finance and investment
business in strategic partnership with TPG, the global alternative
asset firm.
The TSSP term loan facility will be available to the company in
three tranches:
- $200 million will be immediately
available upon the closing of the facility;
- $50 million will be available upon the
designation of ANNOVERA as a new category of birth control by the
U.S. Food and Drug Administration on or prior to December 31, 2019;
and
- $50 million will be available upon
TherapeuticsMD achieving $11 million in net revenues from IMVEXXY,
BIJUVA and ANNOVERA for the fourth quarter of 2019
TherapeuticsMD anticipates that the TSSP term loan facility will
close on or before May 10, 2019, subject to the satisfaction of
certain customary conditions precedent.
Borrowings under the TSSP term loan facility will accrue
interest at 3-month LIBOR plus 7.75%, subject to a LIBOR floor of
2.70%. Interest on amounts borrowed under the facility will be
payable quarterly. The outstanding principal amount of the term
loan facility will be payable in four equal quarterly installments
beginning on June 30, 2023, with the term loan facility maturing on
March 31, 2024.
"We are very pleased with the flexible terms of our new facility
with TPG Sixth Street Partners,” said Robert G. Finizio, CEO of
TherapeuticsMD. “This facility will allow us to continue our growth
strategy as we focus on the commercial launch of BIJUVA and prepare
for the launch of ANNOVERA later this year. This financing
demonstrates the confidence that our new lenders have in our
business and also further strengthens our balance sheet without any
dilution in equity."
TherapeuticsMD has notified its existing lender, MidCap
Financial Trust, managed by Apollo Capital Management, L.P., that
the company will be terminating its existing term loan credit and
security agreement. A portion of the initial tranche of the new
TSSP facility will be used to repay amounts outstanding under the
company’s existing term loan credit and security agreement with
MidCap Financial Trust.
Conference Call Today
TherapeuticsMD will host a conference call today to discuss the
financing transaction and the launch of BIJUVA. Details for the
call are:
Date:
Wednesday, April 17, 2019
Time:
4:30 p.m. ET
Telephone Access (US):
866-665-9531
Telephone Access
(International):
724-987-6977
Access Code for All Callers:
3162619
About TPG Sixth Street Partners (TSSP)
TPG Sixth Street Partners (TSSP) is a global finance and
investment business with over $30 billion in assets under
management. Co-founded in 2009 by Managing Partner Alan Waxman and
TSSP’s management team, the firm’s long-term oriented, highly
flexible capital base allows it to invest across industries,
geographies, capital structures and asset classes. TSSP focuses on
partnering with businesses and management teams to create fully
committed financing solutions. TSSP is in a strategic
partnership with TPG, the global alternative asset firm. For more
information, visit www.tssp.com.
About TherapeuticsMD, Inc.
TherapeuticsMD, Inc. is an innovative, leading healthcare
company, focused on developing and commercializing novel products
exclusively for women. Our products are designed to address the
unique changes and challenges women experience through the various
stages of their lives with a therapeutic focus in family planning,
reproductive health, and menopause management. The company is
committed to advancing the health of women and championing
awareness of their healthcare issues. To learn more about
TherapeuticsMD, please visit www.therapeuticsmd.com or follow us on
Twitter: @TherapeuticsMD and on Facebook: TherapeuticsMD.
Forward-Looking Statements
This press release by TherapeuticsMD, Inc. may contain
forward-looking statements. Forward-looking statements may include,
but are not limited to, statements relating to TherapeuticsMD’s
objectives, plans and strategies as well as statements, other than
historical facts, that address activities, events or developments
that the company intends, expects, projects, believes or
anticipates will or may occur in the future. These statements are
often characterized by terminology such as “believes,” “hopes,”
“may,” “anticipates,” “should,” “intends,” “plans,” “will,”
“expects,” “estimates,” “projects,” “positioned,” “strategy” and
similar expressions and are based on assumptions and assessments
made in light of management’s experience and perception of
historical trends, current conditions, expected future developments
and other factors believed to be appropriate. Forward-looking
statements in this press release are made as of the date of this
press release, and the company undertakes no duty to update or
revise any such statements, whether as a result of new information,
future events or otherwise. Forward-looking statements are not
guarantees of future performance and are subject to risks and
uncertainties, many of which are outside of the company’s control.
Important factors that could cause actual results, developments and
business decisions to differ materially from forward-looking
statements are described in the sections titled “Risk Factors” in
the company’s filings with the Securities and Exchange
Commission, including its most recent Annual Report on Form 10-K
and Quarterly Reports on Form 10-Q, as well as reports on Form 8-K,
and include the following: the company’s ability to maintain or
increase sales of its products; the company’s ability to develop
and commercialize IMVEXXY®, ANNOVERA™, BIJUVA™ and its hormone
therapy drug candidates and obtain additional financing necessary
therefor; whether the company will be able to close its term loan
facility with TSSP and thereafter will be able to comply with the
covenants and conditions under such term loan facility; the
potential of adverse side effects or other safety risks that could
adversely affect the commercialization of the company’s current or
future approved products or preclude the approval of the company’s
future drug candidates; the length, cost and uncertain results of
future clinical trials; the company’s reliance on third parties to
conduct its manufacturing, research and development and clinical
trials; the availability of reimbursement from government
authorities and health insurance companies for the company’s
products; the impact of product liability lawsuits; the influence
of extensive and costly government regulation; the volatility of
the trading price of the company’s common stock and the
concentration of power in its stock ownership. PDF copies of the
company’s historical press releases and financial tables can be
viewed and downloaded at its
website: www.therapeuticsmd.com/pressreleases.aspx.
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version on businesswire.com: https://www.businesswire.com/news/home/20190417005279/en/
Nichol OchsnerVice President, Investor Relations561-961-1900,
ext. 2088Nochsner@TherapeuticsMD.com
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