Verrica gets up to $125 million of term loans via OrbiMed

By Wendy Van Sickle

Columbus, Ohio, July 26 – Verrica Pharmaceuticals Inc. entered into a credit agreement on Wednesday with OrbiMed Royalty & Credit Opportunities IV, LP as administrative agent that provides for a five-year senior secured credit facility of up to $125 million, according to an 8-K filing with the Securities and Exchange Commission.

On the closing date, $50 million was made available to and drawn by the company; up to $25 million will be made available on or prior to June 30, 2024, up to $15 million will be made available on or prior to Dec. 31, 2024, up to an additional $15 million will be made available on or prior to Dec. 31, 2024, up to $10 million will be made available on or prior to March 31, 2025, and up to $10 million will be made available on or prior to June 30, 2025, in each case subject to the satisfaction of certain revenue requirements.

The term loan will mature on July 26, 2028.

Interest will accrue at SOFR plus 800 basis points with a 4% SOFR floor. During an event of default there will be additional interest of 400 bps.

Verrica will pay certain fees with respect to the loan facility, including an upfront fee, an unused fee on the undrawn portion, an administration fee, a prepayment premium and an exit fee.

Based in West Chester, Pa., Verrica is a dermatology therapeutics company developing medications for skin diseases requiring medical interventions.

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