Verona Pharma Announces Amended Strategic Financing with Oaktree and OMERS
Rhea-AI Summary
Verona Pharma (VRNA) has amended its strategic financing agreements with Oaktree Capital Management and OMERS Life Sciences, marking significant changes to its capital structure. The company has:
- Repurchased the Revenue Interest Purchase and Sale Agreement (RIPSA) $100 million obligation
- Increased its term loan facility to $450 million with improved terms
- Borrowed $125 million from an expanded Tranche C, bringing total outstanding debt to $250 million
- Reduced interest rates from 11% to 9.7%, with potential further reduction to 9.35% upon meeting sales milestones
- Gained ability to secure up to $75 million in working capital revolving credit
The refinancing reflects the successful launch and growing prescriptions of Ohtuvayre™ (ensifentrine), their COPD maintenance treatment, providing increased financial flexibility and simplified balance sheet structure.
Positive
- Reduced interest rates from 11% to 9.7% with potential further reduction to 9.35%
- Increased financial flexibility with $450M term loan facility
- Access to additional $200M subject to conditions
- Growing prescription rates for Ohtuvayre
- Ability to secure up to $75M in working capital revolving credit
Negative
- Increased total debt facility to $450M
- Outstanding debt of $250M after new borrowing
News Market Reaction
On the day this news was published, VRNA declined 2.81%, reflecting a moderate negative market reaction.
Data tracked by StockTitan Argus on the day of publication.
RIPSA interests repurchased
Term loan facility increased to
Access to up to an additional
LONDON and RALEIGH, N.C., March 28, 2025 (GLOBE NEWSWIRE) -- Verona Pharma plc (Nasdaq: VRNA) (“Verona Pharma” or the “Company”), a biopharmaceutical company focused on respiratory diseases, has amended its existing strategic financing agreements by repaying the revenue interest purchase and sale agreement (“RIPSA”) and increasing the debt facility to
“We are pleased that Oaktree and OMERS recognize the ongoing success of the Ohtuvayre™ (ensifentrine) launch and continued growth of Ohtuvayre prescriptions. This growth has allowed us to terminate the RIPSA and amend our term loan facility with Oaktree and OMERS, increasing our financial flexibility and simplifying our balance sheet,” said David Zaccardelli, Pharm. D., President and Chief Executive Officer. “We continue to have access to up to
“We have been very impressed by the US launch of Ohtuvayre as a novel maintenance treatment for COPD,” commented Aman Kumar, Co-Portfolio Manager for Oaktree’s Life Sciences Lending platform. “We are delighted to continue our partnership with the Company and look forward to supporting them as they expand access to this important therapy for COPD patients globally.”
The strategic financing arrangements were revised as follows:
RIPSA
- Repurchased the
$100 million obligation with reduced repayment fees
Term loan facility
- Increased facility to
$450 million and borrowed$125 million from an expanded Tranche C resulting in an aggregate of$250 million outstanding - Reduced the interest rate from
11% to9.7% with a further reduction to9.35% upon achievement of certain sales milestones - Added a provision allowing Verona Pharma to secure a working capital revolving credit facility of up to
$75 million with a separate group
For further information please contact:
| Verona Pharma plc | Tel: +1-844-341-9901 |
| Victoria Stewart, Senior Director of Investor Relations and Communications | IR@veronapharma.com |
| Argot Partners US Investor Enquiries | Tel: +1-212-600-1902 verona@argotpartners.com |
| Ten Bridge Communications International / US Media Enquiries | Tel: +1-781-316-4424 tbcverona@tenbridgecommunications.com |
| Wendy Ryan |
About Verona Pharma
Verona Pharma is a biopharmaceutical company focused on developing and commercializing innovative therapies for the treatment of chronic respiratory diseases with significant unmet medical needs. Ohtuvayre™ (ensifentrine) is the Company’s first commercial product and the first inhaled therapy for the maintenance treatment of COPD that combines bronchodilator and non-steroidal anti-inflammatory activities in one molecule. Ensifentrine has potential applications in non-cystic fibrosis bronchiectasis, cystic fibrosis, asthma and other respiratory diseases. For more information, please visit www.veronapharma.com.
About Oaktree
Oaktree is a leader among global investment managers specializing in alternative investments, with
About OMERS Life Sciences and OMERS
OMERS Life Sciences provides royalty financings and other non-dilutive solutions to biopharma companies and academic institutions, supporting their efforts to address unmet medical needs and improve the quality of life of patients around the world.
OMERS is a jointly sponsored, defined benefit pension plan, with 1,000 participating employers ranging from large cities to local agencies, and almost 640,000 active, deferred and retired members. Our members include union and non-union employees of municipalities, school boards, local boards, transit systems, electrical utilities, emergency services and children’s aid societies across Ontario. OMERS teams work in Toronto, London, New York, Amsterdam, Luxembourg, Singapore, Sydney and other major cities across North America and Europe – serving members and employers, and originating and managing a diversified portfolio of high-quality investments in government bonds, public and private credit, public and private equities, infrastructure and real estate.
Forward-Looking Statements
This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, as amended. All statements contained in this press release other than statements of historical fact should be considered forward-looking statements. Words such as “anticipate,” “believe,” “plan,” “expect,” “intend,” “may,” “potential,” “prepare,” “possible” and similar words and expressions are intended to identify forward-looking statements. These forward-looking statements include, but are not limited to, statements regarding the amounts expected to become available and conditions under the term loan facility, the potential for us to secure a working capital revolving credit facility of up to
These forward-looking statements are based on management's current expectations. These statements are neither promises nor guarantees, but involve known and unknown risks, uncertainties and other important factors that may cause our actual results, performance or achievements to be materially different from our expectations expressed or implied by the forward-looking statements, including, but not limited to: risks related to our limited operating history; our need for additional funding to complete development and commercialization of Ohtuvayre which may not be available and which may force us to delay, reduce or eliminate our development or commercialization efforts; our reliance on the success of Ohtuvayre, the terms of our credit agreement and the revenue interest purchase and sale agreement ("RIPSA”) place restrictions on our operating and financial flexibility, and if we fail to comply with certain covenants in the RIPSA, our results of operations and financial condition may be harmed; the efficacy of Ohtuvayre compared to competing drugs; and the other important factors discussed under the caption “Risk Factors” in our Annual Report on Form 10-K for the period ended December 31, 2024 filed with the Securities and Exchange Commission (“SEC”) on February 27, 2025, as such factors may be updated from time to time in our other filings with the SEC. We disclaim any obligation to update or revise any forward-looking statement contained in this press release, even if subsequent events cause our views to change, except as required under applicable law.
FAQ
What are the key terms of VRNA's amended financing agreement with Oaktree and OMERS?
How much has VRNA reduced its interest rates in the March 2025 refinancing?
What is the total outstanding debt for VRNA after the March 2025 refinancing?
How much additional working capital can VRNA secure under the new agreement?
