Relypsa Secures Loan Facility of Up to $35 Million
Company Restructures Debt and Reduces Debt Service Costs
REDWOOD CITY, Calif., June 2, 2014 (GLOBE NEWSWIRE) — Relypsa, Inc. (Nasdaq:RLYP), a biopharmaceutical company, today announced it has secured a loan facility of up to $35 million with Oxford Finance LLC (“Oxford”) and Silicon Valley Bank (“SVB”).
Under the terms of the agreement, the company immediately drew $15 million upon closing on May 30, 2014, of which $11 million was used to repay in full the company’s existing debt with Oxford and SVB, leaving the remaining $4 million available for working capital purposes. Payments on the new $15 million will be interest only through April 2015. Upon acceptance of the company’s New Drug Application for patiromer by the U.S. Food and Drug Administration, the interest only payment period will be extended to December 2015 and the company may, at its option, draw an additional $20 million during the second half of 2015.
“We are pleased to expand our relationship with Oxford Finance and Silicon Valley Bank,” said Kristine Ball, chief financial officer of Relypsa. “The new facility provides for an immediate reduction in debt service costs and allows for more non-dilutive financial flexibility as we pursue approval of our lead product candidate, patiromer.”
About Relypsa, Inc.
Relypsa, Inc. is a biopharmaceutical company focused on the development and commercialization of non-absorbed polymeric drugs to treat disorders in the areas of renal, cardiovascular and metabolic diseases. The company’s two-part pivotal Phase 3 trial of its lead product candidate, patiromer, for the treatment of hyperkalemia, a life-threatening condition defined as abnormally elevated levels of potassium in the blood, has been completed and the primary and secondary endpoints were met. Relypsa has global royalty-free commercialization rights to patiromer, which has intellectual property protection in the U.S. until at least 2030. More information is available at www.relypsa.com.
Forward Looking Statements
To the extent that statements contained in this press release are not descriptions of historical facts regarding Relypsa, they are forward-looking statements reflecting the current beliefs and expectations of management made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995, including statements regarding the potential impact of the new debt facility and plans to pursue product approval of patiromer. Such forward-looking statements involve substantial risks and uncertainties that relate to future events and the actual results could differ significantly from those expressed or implied by the forward-looking statements. Such risks and uncertainties include, among others, the uncertainties inherent in the clinical drug development process, including the regulatory approval process, the timing of the company’s regulatory filings, the company’s substantial dependence on patiromer, the company’s commercialization plans and efforts and other matters that could affect the availability or commercial potential of patiromer. Relypsa undertakes no obligation to update or revise any forward-looking statements. For a further description of the risks and uncertainties that could cause actual results to differ from those expressed in these forward-looking statements, as well as risks relating to the business of the company in general, see Relypsa’s current and future reports filed with the U.S. Securities and Exchange Commission, including its Quarterly Report on Form 10-Q for the quarterly period ended March 31, 2014.
V.P. Investor Relations and Corporate Affairs