PRINCETON, N.J.– UroGen Pharma Ltd. (Nasdaq: URGN), a biotech company dedicated to developing and commercializing innovative solutions that treat urothelial and specialty cancers, today announced the signing of an up to $100 million term loan financing facility with funds managed by Pharmakon Advisors, L.P.
The loan facility will be available to UroGen, subject to the terms and conditions of the loan agreement, as follows:
- Senior secured term loan of up to $100 million in two tranches.
- $75 million is expected to be funded within 10 business days following closing.
- At its option, UroGen may draw up to an additional $25 million before December 31, 2022.
- The company is not required to maintain any financial covenants.
- Interest will accrue at 3-month LIBOR (with a 1.25% floor) plus 8.25%.
- The facility will mature five years from initial funding and be interest only for the first 48 months.
“We are pleased to have secured this loan facility which significantly strengthens our financial position. Based on our revenue projections and current financial models, we believe we have the tools to reach cash flow breakeven,” said Liz Barrett, Chief Executive Officer of UroGen. “In addition to supporting our continued launch of Jelmyto, the financing will also provide capital to support our pivotal Phase 3 single-arm ENVISION study of UGN-102 and planned multi-arm Phase 1 clinical study of UGN-301.”
“Pharmakon is proud to financially support UroGen’s mission of creating novel solutions to address the unmet needs in urothelial and specialty cancers,” said Martin Friedman, Principal at Pharmakon Advisors. “We strongly believe in the opportunity of Jelmyto and UroGen’s pipeline and we are looking forward to our partnership with UroGen.”
Cowen acted as exclusive financial advisor to UroGen on this transaction.
Following this announcement, the Company has elected to reschedule reporting of its fourth quarter and full-year 2021 financial results from March 10, 2022 to March 21, 2022, prior to the open of the stock market. The announcement will be followed by a live audio webcast and conference call at 10:00 AM Eastern Time.
