Omeros’ new six-year $125 million term loan has delayed-draw feature

By Wendy Van Sickle

Columbus, Ohio, Oct. 27 – Omeros Corp. closed a six-year senior credit facility providing for an $80 million term loan to be drawn within 10 days and up to $45 million in additional term loans to be drawn on achievement of certain milestones through Dec. 31, 2017 with CRG LP, according to a Thursday press release.

The credit facility replaces the company’s existing credit facility, which had more restrictive cash requirements, and provides additional working capital for Omeros’ advancing pipeline.

The additional $45 million is available in two tranches, a $25 million tranche and a $20 million tranche, available on satisfaction of a minimum net revenue milestone for Omeros’ Omidria ophthalmology product or a minimum average market capitalization, according to an 8-K filing with the Securities and Exchange Commission.

Interest accrues at an annual fixed rate of 12¼%, 4% of which may be deferred during the initial four-year interest-only period by adding the amount to the principal loan amount.

If an Omidria revenue milestone is satisfied during the 12 months ending Dec. 31, 2019, the interest rate drops to 11½%, 3½% of which may be paid in the form of PIK loans.

After the four-year interest-only period, monthly principal and interest payments will be due through the Sept. 30, 2022 maturity.

Omeros may extend the interest-only period to maturity, thereby converting the loan to a six-year bullet, if it achieves the Omidria revenue milestone in 2019 or a market capitalization threshold in 2020.

Additionally, the company must achieve through the end of 2021 either:

• Certain minimum total annual revenue amounts, any shortfall in which can be cured by a cash payment to the lenders equal to the shortfall amount and any prepayment fees due; or

• A minimum market capitalization threshold.

Omeros must also maintain $5 million in cash and cash equivalents during the term of the facility.

The company will use about $76 million of the loan proceeds to repay its obligations under the previous credit facility. Remaining net proceeds and any of the additional $45 million if borrowed, will be used for general corporate purposes and working capital, including for clinical and preclinical programs.

Omeros is a biopharmaceutical company based in Seattle.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.