TherapeuticsMD draws first $75 million of up to $200 million loan

By Wendy Van Sickle

Columbus, Ohio, June 7 – TherapeuticsMD Inc. completed the first $75 million drawdown on its $200 million secured term loan facility on Thursday, according to an 8-K filing with the Securities and Exchange Commission.

The company entered into the credit and security agreement on May 3. The five-year agreement provides for an up to $200 million secured term loan facility to be made in three tranches, each to be available upon achievement by the company of certain milestones.

This first $75 million tranche was available to be drawn on or before July 31 upon the company’s satisfaction of conditions, including approval by the U.S. Food and Drug Administration of the borrower’s application for its TX-004HR drug candidate.

Therapeutics said proceeds of the first tranche will be used to support the commercial launch of its recently approved product, Imvexxy, for the treatment of moderate-to-severe vaginal pain associated with sexual activity related to menopause.

MidCap Financial Trust is the agent.

The second tranche of $75 million may be drawn on or before May 31, 2019 provided that the FDA has approved the borrower’s application for its TX-001HR drug candidate and has consummated its first commercial sale of the drug in the United Sates.

The third tranche of $50 million may be drawn on or before Dec. 31, 2019 provided that the second tranche has been drawn and the borrowers generated at least $75 million of consolidated net revenue from sales of TX-001HR and TX-004HR during the 12 months before funding of the third tranche.

Borrowings will bear interest at Libor plus 775 basis points with a 1.5% Libor floor.

Principal on each tranche will be payable in 36 equal monthly installments beginning May 1, 2020 until paid in full on the maturity date, May 1, 2023.

The borrower must maintain a minimum cash balance of $50 million and achieve certain minimum consolidated net revenue amounts attributable to commercial sales of products.

The pharmaceutical company is based in Boca Raton, Fla.

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