TherapeuticsMD signs commitment letter for $300 million term loan

By Sarah Lizee

Olympia, Wash., April 17 – TherapeuticsMD, Inc. signed a binding commitment letter for a fully negotiated $300 million non-dilutive secured term loan financing facility with TPG Sixth Street Partners, according to a press release.

The term loan facility will be available to the company in three tranches, including $200 million immediately available at close, $50 million 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 Dec. 31, 2019, and $50 million available upon TherapeuticsMD achieving $11 million in net revenues from Imvexxy, Bijuva and Annovera for the fourth quarter of 2019.

The company anticipates that the term loan facility will close on or before May 10.

Interest is Libor plus 775 basis points, subject to a Libor floor of 2.7%.

The outstanding principal amount of the term loan facility will be payable in four equal quarterly installments beginning on June 30, 2023, with the facility maturing on March 31, 2024.

TherapeuticsMD said it notified its existing lender, MidCap Financial Trust, managed by Apollo Capital Management, LP, that the company will be terminating its existing term loan credit and security agreement. A portion of the initial tranche of the new facility will be used to repay amounts outstanding under the existing term loan.

The pharmaceutical company is based in Boca Raton, Fla.

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