Transaction Information
Ocular Therapeutix, Inc. (NASDAQ: OCUL, "Ocular Therapeutix", or "the Company), a biopharmaceutical company focused on development and commercialization of innovative therapies for diseases and conditions of the eye, has announced that it has entered into an $82.5 million term debt financing with Barings Finance LLC ("Barings"). The non-dilutive capital will be used to (i) repay the Company's existing $25 million debt facility and (ii) fund continued development of the Company's clinical-stage pipeline.
Under the terms of the agreement, Ocular Therapeutix will receive $82.5 million in cash at closing. The maturity date for this facility is the sixth anniversary of closing, with no amortization of principal until bullet repayment at maturity. Interest will accrue at a rate of SOFR + 6.75%, subject to a 1.50% SOFR floor. In addition to monthly payments of interest, Barings is eligible to receive a quarterly royalty of 3.5% on sales of DEXTENZA, the Company's lead commercial product. The overall deal is subject to a cumulative payment cap of 2.0x, at which point no further royalties will be owed to Barings. The transaction was structured with flexible prepayment terms.
Ladenburg Thalmann & Co. Inc. served as exclusive financial advisor and placement agent to Ocular Therapeutix.
About Ocular Therapeutix, Inc.
Ocular Therapeutix, Inc. is a biopharmaceutical company focused on the formulation, development, and commercialization of innovative therapies for diseases and conditions of the eye using its proprietary bioresorbable hydrogel-based formulation technology. Ocular Therapeutix's first commercial drug product, DEXTENZA®, is an FDA-approved corticosteroid for the treatment of ocular inflammation and pain following ophthalmic surgery and ocular itching associated with allergic conjunctivitis. Ocular Therapeutix's earlier stage development assets include: OTX-TKI (axitinib intravitreal implant), currently in Phase 1 clinical trials for the treatment of wet AMD and diabetic retinopathy; OTX-TIC (travoprost intracameral implant), currently in a Phase 2 clinical trial for the treatment of primary open-angle glaucoma or ocular hypertension; and OTX-CSI (cyclosporine intracanalicular insert) for the chronic treatment of dry eye disease and OTX-DED (dexamethasone intracanalicular insert) for the short-term treatment of the signs and symptoms of dry eye disease, both of which have completed Phase 2 clinical trials. For more information, please visit https://www.ocutx.com/.
The information and material presented is provided for informational purposes only and are not to be used or considered as an offer or the solicitation of an offer to sell or buy any securities mentioned herein.