Esperion Therapeutics Secures $150 Million Term Loan in Recent Credit Agreement

On December 12, 2024, Esperion Therapeutics, Inc. (NASDAQ: ESPR) finalized a credit agreement with GLAS USA LLC and several initial lenders for a $150,000,000 term loan to refinance a portion of its existing Convertible Senior Subordinated Notes due in November 2025. The loan, fully drawn on closing, aims to support repayment efforts and cover associated fees and expenses.

The interest on the loan, if paid in cash, will amount to 9.75%; however, if paid-in-kind, the rate rises to 11.75%. For the initial four years post-closure, the company will make interest-only payments. Subsequently, the loan will amortize in quarterly principal payments of 12.50%, with the remaining balance due on the five-year Maturity Date. The company retains the option to prepay the loan in full or part, subject to specific fees and premiums based on the prepayment timing.

Under the Credit Agreement, all company obligations will be guaranteed by its current and future wholly-owned subsidiaries, secured by the assets of the company and the guarantors, with a stipulated financial covenant to maintain a minimum liquidity of $50,000,000. Standard affirmative and negative covenants are in place to regulate aspects like asset disposition, mergers, additional indebtedness, among others.

In another financial move, Esperion entered into exchange and subscription agreements with holders of its 4.00% Convertible Senior Subordinated Notes due 2025. This agreement involves issuing $100 million worth of 5.75% Convertible Senior Subordinated Notes due 2030 in exchange for existing 2025 Notes, along with a cash component, all conducted under Securities Act exemptions.

The New Notes will initially convert at a rate of 326.7974 shares of common stock per $1,000 principal amount, representing an approximate conversion price of $3.06 per share. These transactions are expected to conclude around December 17, 2024, subject to standard conditions.

Esperion recently announced these financial arrangements through a press release on December 13, 2024. The Company will utilize proceeds from the credit facility and these financial transactions for general corporate purposes, as specified in the agreements.

This article was generated by an automated content engine and was reviewed by a human editor prior to publication. For additional information, read Esperion Therapeutics’s 8K filing here.

About Esperion Therapeutics

Esperion Therapeutics, Inc, a pharmaceutical company, develops and commercializes medicines for the treatment of patients with elevated low density lipoprotein cholesterol (LDL-C). Its marketed products include NEXLETOL (bempedoic acid) and NEXLIZET (bempedoic acid and ezetimibe) tablets that are oral, once-daily, non-statin medicines for the treatment of primary hyperlipidemia in adults with heterozygous familial hypercholesterolemia or atherosclerotic cardiovascular disease who require additional lowering of LDL-C.