Ardelyx Announces Amendment of Debt Financing Agreement with SLR Capital Partners to Provide $50 Million of Additional Committed Capital
18 Oktober 2023 - 1:23AM
Ardelyx, Inc. (Nasdaq: ARDX), a biopharmaceutical company founded
with a mission to discover, develop and commercialize innovative,
first-in-class medicines that meet significant unmet medical needs,
today announced that it has amended the debt financing agreement
with investment affiliates managed by SLR Capital Partners (SLR) it
originally entered into in February 2022. The amendment includes
access to an additional $50 million in committed debt financing, at
Ardelyx’s election, and, subject to SLR credit approval, may be
further increased by an additional $50 million. The interest-only
period for existing and new tranches funded under the instrument is
extended to December 31, 2026, effective upon Ardelyx’s decision to
draw the second tranche of $22.5 million. Ardelyx currently expects
to draw the second tranche in October to support the commercial
launch of XPHOZAH.
“We are pleased to expand our relationship with SLR through this
amendment, which will provide non-dilutive funding to strengthen
our balance sheet and extend our runway. We believe this financing
provides us with the funds necessary to support the
commercialization of our two FDA approved products, IBSRELA and
XPHOZAH,” said Justin Renz, chief financial and operations officer
of Ardelyx. “The combination of our strong cash position, multiple
drivers of top-line revenue and options to pursue further business
development in unpartnered territories uniquely positions us to
continue building a leading biopharmaceutical company and bring
first-in-class medicines to patients with unmet medical needs. I
would like to thank SLR for their continued partnership, which we
believe reflects the value of Ardelyx, our novel mechanism
therapies and the investment opportunity that Ardelyx
presents.”
"SLR is excited to continue our funding partnership with Ardelyx
as they launch XPHOZAH and commercialize it alongside IBSRELA,”
said Anthony Storino, Head of Life Science Finance at SLR. “We are
delighted to partner with Ardelyx during this important milestone
as they prepare to launch their second commercial product in the
U.S. and continue to invest in their future. This significant
commitment of capital supports our belief in the company and our
commitment to financing life sciences companies across later stages
of development and commercialization."
Ardelyx drew $27.5 million under the agreement with SLR in
February 2022 and currently expects to draw the remaining $22.5
million under the original agreement in October 2023. This
amendment provides Ardelyx with the option to draw an additional
$50 million by March 15, 2024. Ardelyx may also elect to borrow a
fourth tranche of up to an additional $50 million, subject to SLR
credit approval. Ardelyx is under no obligation to draw funds in
the future. March 1, 2027 is the maturity date for all capital from
the facility. The interest rate for the existing facility of $50
million is 7.95% plus a SOFR value equal to 0.022% plus the 1-month
SOFR reference rate, subject to a SOFR floor of one percent. The
interest rate for both the new commitment of $50 million and the
uncommitted $50 million is 4.25% plus a SOFR value equal to 0.022%
plus the 1-month SOFR reference rate, subject to a SOFR floor of
4.70%.
Conference Call DetailsThe company will host a
conference call tomorrow, October 18, 2023, at 8:00 AM ET to
discuss the company’s previously announced FDA approval as well as
today’s announcement. To participate in the conference call, please
dial (844) 481-2838 (domestic) or (412) 317-1858 (international)
and ask to be joined into the Ardelyx call. A webcast of the call
can also be accessed by visiting the Investor page of the company’s
website, www.ardelyx.com, and will be available on the website for
30 days following the call.
About Ardelyx, Inc.Ardelyx was founded with a
mission to discover, develop and commercialize innovative,
first-in-class medicines that meet significant unmet medical needs.
Ardelyx has two commercial products approved in the United States,
IBSRELA® (tenapanor) and XPHOZAH® (tenapanor) as well as
early-stage pipeline candidates. Ardelyx has agreements for the
development and commercialization of tenapanor outside of the U.S.
Kyowa Kirin has received approval for PHOZEVEL® (tenapanor) for
hyperphosphatemia in Japan. A New Drug Application for tenapanor
for hyperphosphatemia has been submitted in China with Fosun
Pharma. Knight Therapeutics commercializes IBSRELA in Canada. For
more information, please visit https://ardelyx.com/ and connect
with us on X (formerly known as Twitter), LinkedIn and
Facebook.
About SLR Capital PartnersFounded in 2006, SLR
is a diversified middle market private credit solutions platform.
The firm is an SEC-registered investment adviser and primarily
invests in U.S. middle market companies in the form of cash flow,
asset-based, and specialty finance senior secured loans. SLR
manages public and private business development companies (“BDCs”),
private credit funds, and separately managed accounts, including
serving as the investment adviser to publicly-traded BDC SLR
Investment Corp. (Nasdaq: SLRC).The SLR Capital Partners Life
Science Finance business provides financing solutions for
later-stage bio-pharma, medical device, diagnostics, healthcare IT,
and healthcare services companies, both venture-backed private and
public, and from pre-revenue clinical to early commercial stage.
For more information, please visit:
https://www.slrcapitalpartners.com/Financial-Solutions/Life-Science-Finance.
Forward Looking Statements To the extent that
statements contained in this press release are not descriptions of
historical facts regarding Ardelyx, they are forward-looking
statements reflecting the current beliefs and expectations of
management made pursuant to the safe harbor of the Private
Securities Reform Act of 1995, including our financing needs and
access to capital. Such forward-looking statements involve
substantial risks and uncertainties that could cause Ardelyx’s
future results, performance or achievements to differ significantly
from those expressed or implied by the forward-looking statements.
Such risks and uncertainties include, among others, uncertainties
associated with the development of, regulatory process for, and
commercialization of drugs in the U.S. and internationally. Ardelyx
undertakes no obligation to update or revise any forward-looking
statements. For a further description of the risks and
uncertainties that could cause actual results to differ from those
expressed in these forward-looking statements, as well as risks
relating to Ardelyx’s business in general, please refer to
Ardelyx’s Quarterly Report on Form 10-Q filed with the Securities
and Exchange Commission on August 2, 2023, and its future current
and periodic reports to be filed with the Securities and Exchange
Commission.
Investor and Media Contacts: Caitlin
Lowieclowie@ardelyx.com
Kimia Keshtbodkkeshtbod@ardelyx.com
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