Verrica Pharmaceuticals Inc. (VRCA): debt financing — Verrica closes $125M debt financing from OrbiMed; $50M funded, $75M tranched on revenue milestones

Verrica Pharmaceuticals Inc.

$50M borrowed at closing; up to $75M additional available in five tranches subject to YCANTH revenue thresholds.
Five-year term loan matures July 2028; interest rate is one-month SOFR plus 8% (floor 4%).
OrbiMed receives warrant for 518,551 shares at $6.0264 per share (10-year term).
Proceeds support commercialization of YCANTH, FDA-approved July 21, 2023 for molluscum contagiosum.
Cash runway extended into Q1 2025; company believes no additional equity financing needed.

item 1.01 item 2.03 item 3.02 item 7.01 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 0.95

Verrica Pharmaceuticals Inc. incurred credit facility of up to $125 million with OrbiMed Royalty & Credit Opportunities IV, LP at the higher of (x) the SOFR rate and (y) 4.00% plus 8.00% maturing July 26, 2028.

Instrument: credit facility
Principal: up to $125 million
Counterparty: OrbiMed Royalty & Credit Opportunities IV, LP
Rate: the higher of (x) the SOFR rate and (y) 4.00% plus 8.00%
Maturity: July 26, 2028
Event: incurrence

Exact text from the filing

The Credit Agreement provides for a five-year senior secured credit facility in an aggregate principal amount of up to $125 million

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

Verrica Pharmaceuticals Inc. entered into Credit Agreement with OrbiMed Royalty & Credit Opportunities IV, LP valued at up to $125 million (effective 2023-07-26).

Action: entry
Agreement: credit facility
Counterparty: OrbiMed Royalty & Credit Opportunities IV, LP
Value: up to $125 million
Effective: 2023-07-26

Exact text from the filing

On July 26, 2023 (the “ Closing Date ”), Verrica Pharmaceuticals Inc., a Delaware corporation (the “ Company ”) entered into a Credit Agreement (the “ Credit Agreement ”), by and between the Company, as borrower, and OrbiMed Royalty & Credit Opportunities IV, LP, a Delaware limited partnership (the “ Initial Lender ”), as a lender, and each other lender that may from time to time become a party thereto (each, including the Initial Lender, and together with their affiliates, successors, transferees and assignees, the “ Lenders ”), and OrbiMed Royalty & Credit Opportunities IV, LP, as administrative agent for the Lenders (in such capacity, the “ Administrative Agent ”).

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88 debt financings filed in the last 30 days. Browse all debt financings →

Verrica Pharmaceuticals Inc. filing history →

Source: SEC EDGAR

accession 0001193125-23-194625

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