Liquidia Corp (LQDA): debt financing — Liquidia enters up to $100M royalty financing with HealthCare Royalty; repays SVB debt

Liquidia Corp

HealthCare Royalty provides up to $100M; initial $32.5M closing, $22.3M used to retire SVB term debt.
Additional $7.5M for PH product acquisition, $35M upon favorable patent litigation outcome, $25M mutual.
Non-dilutive capital extends cash runway through at least 2024; minimum cash covenant $7.5M in 2024, $15M from 2025.
HCRx receives tiered royalty (0.36%-10%) on net revenue capped at 175% of funded amount plus IRR true-up.
Financing supports YUTREPIA launch; litigation with United Therapeutics ongoing.

item 1.01 item 1.02 item 2.03 item 8.01 item 9.01

Key facts

Extracted from this filing and checked against the source text.

Debt Financings SEC 8-K Item 2.03/2.04 confidence 0.9

Liquidia Corp incurred debt of $32.5 million of the Investment Amount will be funded at the initial closing with HealthCare Royalty Partners IV, L.P. at tiered royalty on annual net revenue ... ranging from 3.60% to 10.00% on the fir.

Principal: $32.5 million of the Investment Amount will be funded at the initial closing
Counterparty: HealthCare Royalty Partners IV, L.P.
Rate: tiered royalty on annual net revenue ... ranging from 3.60% to 10.00% on the fir
Event: incurrence

Exact text from the filing

ntered into a Revenue Interest Financing Agreement (the “Agreement”) with HealthCare Royalty Partners IV, L.P. (the “Investor”) and HealthCare Royalty Management, LLC.

View on SEC.gov

Material Agreements SEC 8-K Item 1.01/1.02 confidence 0.9

Liquidia Corp entered into Revenue Interest Financing Agreement with HealthCare Royalty Partners IV, L.P. valued at up to $100.0 million (effective 2023-01-09).

Action: entry
Agreement: credit facility
Counterparty: HealthCare Royalty Partners IV, L.P.
Value: up to $100.0 million
Effective: 2023-01-09

Exact text from the filing

On January 9, 2023, Liquidia Technologies, Inc., a Delaware corporation (the “Company”) and a wholly owned subsidiary of Liquidia Corporation (the “Parent”) entered into a Revenue Interest Financing Agreement (the “Agreement”) with HealthCare Royalty Partners IV, L.P. (the “Investor”) and HealthCare Royalty Management, LLC. Pursuant to the Agreement and subject to customary closing conditions, the Investor has agreed to pay the Company an aggregate investment amount of up to $100.0 million (the “Investment Amount”).

View on SEC.gov

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Liquidia Corp filing history →

Source: SEC EDGAR

accession 0001104659-23-002028

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