$100M drawn down at close; repayment of
existing term loan; near-term access to an additional $50M
Provides significant operating and financial
flexibility
Cash flow breakeven expected by year-end
2023
Xeris 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.
“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.”
Mr. 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.”
Under 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 due 2025 are not extended, converted or
refinanced prior to such date. Amounts borrowed under the debt
facility bear interest at an annual rate equal to 9.00% plus the
greater of (i) CME Term SOFR, subject to a credit spread
adjustment, and (ii) one percent (1.00%) per annum. Xeris is
entitled to make interest-only payments on a quarterly basis until
the maturity date or earlier prepayment of the loan. During the
term of the loan, Xeris is required to maintain certain minimum
liquidity and revenue requirements.
On the closing date, Hayfin received warrants to purchase
1,315,789 shares of common stock of the Company at an exercise
price of $2.28 per share, which will be exercisable until the
seventh (7th) anniversary of the closing date.
Andrew Merrill, Managing Director of Healthcare at Hayfin said,
“We are pleased to be supporting Xeris Biopharma through this
senior secured loan agreement. The transaction is a testament to
Hayfin’s specialist coverage and extensive lending relationships in
the healthcare sector that enable us to provide capital and help
businesses, like Xeris, meet their commercial objectives.”
Evercore acted as sole financial advisor to Xeris on this
transaction.
About Xeris Biopharma
Xeris Biopharma Holdings, Inc. (“Xeris”) (Nasdaq: XERS) is a
biopharmaceutical company developing and commercializing unique
therapies for patient populations in endocrinology, neurology, and
gastroenterology. Xeris has three commercially available products;
Gvoke®, a ready-to-use liquid glucagon for the treatment of severe
hypoglycemia, Keveyis®, the first and only FDA-approved therapy for
primary periodic paralysis, and Recorlev® for the treatment of
endogenous Cushing’s syndrome. Xeris also has a robust pipeline of
development programs to extend the current marketed products into
important new indications and uses and bring new products forward
using its proprietary formulation technology platforms, XeriSol™
and XeriJect™, supporting long-term product development and
commercial success.
Xeris is headquartered in Chicago, IL. For more information,
visit www.xerispharma.com or follow us on Twitter, LinkedIn, or
Instagram.
About Hayfin Capital Management LLP
Founded in 2009, Hayfin Capital Management (“Hayfin”) is a
leading alternative asset management firm with over €23 billion of
assets under management. Hayfin focuses on delivering best-in-class
risk-adjusted returns for its investors across its private credit,
liquid credit and private equity solutions businesses.
Hayfin has a diverse international team of over 165 experienced
industry professionals with offices globally, including
headquarters in London and offices in Frankfurt, Madrid, Milan, New
York, Paris, Luxembourg, San Diego, Singapore and Tel Aviv.
Further information can be found at hayfin.com.
Forward-Looking Statements
Any statements in this press release about future expectations,
plans and prospects for Xeris Biopharma Holdings, Inc., including
statements regarding plans, projections and estimates regarding the
use of proceeds from the term loan facility, the Company’s
expectations regarding its cash flow break-even projection, the
timing or likelihood of funding additional tranches under the term
loan facility and other statements containing the words “will,”
“would,” “continue,” and similar expressions, constitute
forward-looking statements within the meaning of The Private
Securities Litigation Reform Act of 1995. These forward-looking
statements are subject to risks and uncertainties that may cause
actual results to differ materially from those indicated in the
forward-looking statements. Such risks and uncertainties include,
but are not limited to, the commercialization, marketing and
manufacturing of Recorlev®, reliance on third-party suppliers for
Gvoke®, Ogluo®, Keveyis®, and Recorlev®, the regulatory approval of
its product candidates, its ability to market and sell its
products, the impact of the COVID-19 pandemic on Xeris, changes in
global, political, economic, business, competitive, market and
regulatory forces, future exchange and interest rates, changes in
tax laws, regulations, rates and policies, future business
acquisitions or disposals and competitive developments and the
other risks described in Xeris’ Quarterly Report on Form 10-Q and
other reports we file from time to time with the SEC. These
forward-looking statements are based on numerous assumptions and
assessments made in light of Xeris’ experience and perception of
historical trends, current conditions, business strategies,
operating environment, future developments, and other factors it
believes appropriate. By their nature, forward-looking statements
involve known and unknown risks and uncertainties because they
relate to events and depend on circumstances that will occur in the
future. The factors described in the context of such
forward-looking statements in this communication could cause Xeris’
plans with respect to its products and product candidates, Xeris’
actual results, performance or achievements, industry results and
developments to differ materially from those expressed in or
implied by such forward-looking statements. Although it is believed
that the expectations reflected in such forward-looking statements
are reasonable, no assurance can be given that such expectations
will prove to have been correct and persons reading this
communication are therefore cautioned not to place undue reliance
on these forward-looking statements which speak only as at the date
of this communication. Additional information about economic,
competitive, governmental, technological, and other factors that
may affect Xeris is set forth in Item 1A, “Risk Factors,” in Xeris’
most recently filed Quarterly Report on Form 10-Q filed with the
SEC, the contents of which are not incorporated by reference into,
nor do they form part of, this communication. Any forward-looking
statements in this communication are based upon information
available to Xeris, as of the date of this communication and, while
believed to be true when made, may ultimately prove to be
incorrect. Subject to any obligations under applicable law, Xeris
does not undertake any obligation to update any forward-looking
statement whether as a result of new information, future
developments or otherwise, or to conform any forward-looking
statement to actual results, future events, or to changes in
expectations. All subsequent written and oral forward-looking
statements attributable to Xeris or any person acting on behalf of
any of them are expressly qualified in their entirety by this
paragraph.
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version on businesswire.com: https://www.businesswire.com/news/home/20220310005286/en/
Investor Contact: Allison Wey Senior Vice President,
Investor Relations and Corporate Communications
awey@xerispharma.com (312) 736-1237
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