Vera Therapeutics Announces Refinancing of Existing Oxford Debt Facility, Providing up to $500 Million of Term Loans

Rhea-AI Summary

Vera Therapeutics (VERA) has secured a new $500 million credit facility with Oxford Finance, replacing its existing $50 million facility. The initial funding of $75 million is set for June 4, 2025. The new facility features a reduced interest rate of SOFR plus 4.95% (320 basis points lower), with $450 million available in five tranches. Key features include a $50 million draw option through 2026, $75 million tied to atacicept's accelerated approval in IgAN, two $50 million tranches post-approval, and $200 million at mutual discretion. The refinancing extends the interest-only period by 42 months and maturity by 41 months, eliminating 2026 principal payments. The company expects to submit a BLA for atacicept to the FDA in Q4 2025, targeting potential approval and launch in 2026.

Positive

• Secured larger credit facility of $500M, a significant increase from previous $50M facility
• Reduced borrowing cost by 320 basis points with new interest rate of SOFR plus 4.95%
• Extended interest-only period by 42 months and maturity by 41 months
• Eliminated principal payments for 2026
• Non-dilutive financing preserves shareholder value
• BLA submission for atacicept planned for Q4 2025 with potential 2026 launch

Negative

• Additional debt burden could impact financial flexibility
• Future tranches of $225M are tied to atacicept approval and commercial milestones
• Regulatory approval risk for atacicept could affect access to additional funding

Insights

Financial Analyst

Vera secured a $500M credit facility with significantly better terms, strengthening its financial position ahead of potential atacicept approval for IgAN.

Vera Therapeutics has executed a strategic financial maneuver by refinancing its debt facility with Oxford Finance, dramatically increasing available capital from $50 million to $500 million. The immediate benefit is a $75 million initial funding with substantially improved terms: interest rates reduced by 320% basis points, extended interest-only period by up to 42 months, and eliminated 2026 principal payments.

The structure of this refinancing reveals management's confidence in atacicept's regulatory pathway. The facility includes milestone-based tranches that align with the company's clinical and commercial timeline, including $75 million tied to atacicept's accelerated approval for IgAN and additional tranches linked to commercial performance.

This non-dilutive financing significantly enhances Vera's runway and operational flexibility at a critical juncture. With BLA submission planned for Q4 2025 and potential approval in 2026, the company has effectively secured its financial position through its expected transition to commercialization. The $50 million available in 2026 without performance requirements provides important operational security.

The reduced interest expense combined with extended payment timelines creates a more favorable cash flow profile. This transaction was executed through a competitive process, suggesting strong lender confidence in Vera's clinical data and commercial prospects for atacicept in IgAN. The refinancing strengthens Vera's negotiating position for potential partnerships while reducing pressure for equity raises that would dilute existing shareholders.

BRISBANE, Calif., June 03, 2025 (GLOBE NEWSWIRE) -- Vera Therapeutics, Inc. (“Vera”), a late clinical-stage biotechnology company focused on developing and commercializing transformative treatments for patients with serious immunological diseases, today announced that it has entered into a new credit facility providing for up to $500 million of term loans with its current partner Oxford Finance LLC (“Oxford”). The new credit facility will replace Vera’s existing $50 million credit facility. The initial funding of the new credit facility will be in a principal amount of $75 million and is expected to occur on June 4, 2025.

Highlights of the new credit facility include:

• Lowered Interest Rate: Reduced borrowing cost by 320 basis points based on current interest rates. The facility will mature five years from the closing date. Interest will be paid monthly at a rate per annum equal to 1-month SOFR plus 4.95%, subject to a SOFR floor of 3.75%.
• Increased Capital Availability: Added $450 million of discretionary incremental capacity available in five tranches. At its discretion, Vera may draw up to $50 million from January 1, 2026 through December 31, 2026, not subject to additional performance milestones. Vera has the option to draw $75 million upon accelerated approval of atacicept in immunoglobulin A nephropathy (IgAN), two $50 million tranches post accelerated approval and subject to commercial milestones, and up to $200 million at the mutual discretion of Vera and Oxford.
• Improved Structure & Financial Flexibility: Extended the interest only period by up to 42 months and maturity by up to 41 months. As a result of this refinancing, Vera will no longer be required to make principal payments in 2026. The new facility also reduced prepayment and final-payment fees and, combined with the reduced interest rate, results in a cost-effective refinancing that significantly lowers Vera’s cost of capital.
  

“We have crossed a significant Vera milestone with the primary endpoint results from the pivotal atacicept ORIGIN 3 trial; and given the data we presented earlier, we expect this to enable a BLA submission to the FDA in the fourth quarter of this year, which may allow for approval and commercial launch in 2026. If approved, we believe that atacicept has the potential to advance the standard of care in IgA nephropathy,” said Marshall Fordyce, M.D., Founder and CEO of Vera Therapeutics. “The Vera team is well-positioned to build on the success of the lead atacicept development program in IgAN, with the expansion into additional potential indications in other autoimmune kidney diseases and beyond.”

The refinancing significantly reduces interest expense and improves financial flexibility and access to capital as compared to the existing credit facility, with the new credit facility having more borrower-favorable terms overall than those under the existing credit facility. The refinancing enhances Vera’s ability to generate cash and manage its capital structure efficiently while providing additional working capital flexibility to support commercial launch and strategic initiatives.

“Our partnership with Oxford over the past three years has been key to supporting Vera’s growth and we are happy to continue this incredibly productive relationship,” said Sean Grant, Chief Financial Officer of Vera. “We are also very pleased to be able to execute this non-dilutive transaction in today’s market environment with Oxford. Through a competitive process, we secured favorable terms with our current lender, eliminated exit fees from the existing credit facility, and closed the refinancing in a very efficient manner.”

A Form 8-K outlining the full terms of the new credit facility will be filed with the Securities and Exchange Commission. Armentum Partners acted as exclusive financial advisor to Vera. Latham and Watkins LLP served as legal advisor to Vera, and Manatt, Phelps and Phillip, LLP served as legal advisor to Oxford.

About Vera
Vera Therapeutics, Inc. is a late clinical-stage biotechnology company focused on developing treatments for serious immunological diseases. Vera’s mission is to advance treatments that target the source of immunological diseases in order to change the standard of care for patients. Vera’s lead product candidate is atacicept, a fusion protein self-administered as a subcutaneous injection once weekly that blocks both B-cell Activating Factor (BAFF) and A PRoliferation-Inducing Ligand (APRIL), which stimulate B cells to produce autoantibodies contributing to certain autoimmune diseases, including IgAN and lupus nephritis. In addition, Vera is evaluating additional diseases where the reduction of autoantibodies by atacicept may prove medically useful. Vera also holds an exclusive license agreement with Stanford University for a novel, next generation fusion protein targeting BAFF and APRIL, known as VT-109, with wide therapeutic potential across the spectrum of B cell mediated diseases. Vera is also developing MAU868, a monoclonal antibody designed to neutralize infection with BK virus (BKV), a polyomavirus that can have devastating consequences in certain settings such as kidney transplant. Vera retains all global developmental and commercial rights to atacicept and MAU868. For more information, please visit www.veratx.com.

Forward-looking Statements
Statements contained in this press release regarding matters, events or results that may occur in the future are “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements include statements regarding, among other things, Vera’s expectations regarding the credit facility and its impact on Vera’s business and financial position, Vera’s plans to submit a BLA to the FDA and receive FDA approval for atacicept in IgAN and launch it commercially, and, in each case, the timing thereof, atacicept’s potential as a treatment for indications beyond IgAN, atacicept’s potential to advance the standard of care in IgAN, if approved, and other statements that are not historical fact. Because such statements are subject to risk and uncertainties, actual results may differ materially from those expressed or implied by such forward-looking statements. Words such as “believe,” “expect,” “may,” “plan,” “potential,” “will” and similar expressions are intended to identify forward-looking statements. These forward-looking statements are based upon Vera’s current expectations and involve assumptions that may never materialize or may prove to be incorrect. Actual results could differ materially from those anticipated in such forward-looking statements as a result of various risks and uncertainties, which include, without limitation, risks related to the regulatory approval process, results of earlier clinical trials may not be obtained in later clinical trials, preliminary results may not be predictive of topline results, risks and uncertainties associated with Vera’s business in general, the impact of macroeconomic and geopolitical events, and the other risks described in Vera’s filings with the Securities and Exchange Commission. All forward-looking statements contained in this press release speak only as of the date on which they were made and are based on management’s assumptions and estimates as of such date. Vera undertakes no obligation to update such statements to reflect events that occur or circumstances that exist after the date on which they were made, except as required by law.

For more information, please contact:

Investor Contact:
Joyce Allaire
LifeSci Advisors
212-915-2569
jallaire@lifesciadvisors.com

Media Contact:
Debra Charlesworth
Vera Therapeutics
415-854-8051
corporatecommunications@veratx.com

FAQ

What are the key terms of VERA's new $500M credit facility with Oxford Finance?

The facility includes $75M initial funding, interest rate of SOFR plus 4.95%, five-year maturity, and $450M available in five tranches. The interest rate is 320 basis points lower than previous facility.

How will the refinancing affect VERA's financial obligations in 2026?

The refinancing eliminates principal payments in 2026 and extends the interest-only period by 42 months, providing improved financial flexibility.

What conditions are attached to VERA's additional funding tranches?

$75M is tied to atacicept's accelerated approval in IgAN, two $50M tranches depend on commercial milestones, and $200M requires mutual agreement with Oxford.

When does VERA expect to submit the BLA for atacicept and potentially launch the product?

VERA plans to submit the BLA to FDA in Q4 2025, with potential approval and commercial launch in 2026.

How does this refinancing benefit VERA shareholders?

The refinancing is non-dilutive, reduces interest expenses, extends payment terms, and provides additional capital for commercial launch without impacting existing shareholders.