Xeris signs restated credit agreement for $200 million in term loans

By Mary-Katherine Stinson

Lexington, Ky., March 6 – Xeris Biopharma Holdings, Inc., Xeris Pharmaceuticals, Inc. and certain subsidiaries signed an amended and restated credit agreement and guaranty on Tuesday with Hayfin Services LLP listed as administrative agent, according to an 8-K filing with the Securities and Exchange Commission.

The credit agreement provides for an initial $200 million term loan, tranche 1, to Xeris Pharma, which was drawn down at closing and an additional $15.2 million loan, tranche 2, available through July 15, 2025.

The loans will mature on March 5, 2029, or on Jan. 15, 2025 or Jan. 15, 2028 if the company’s 2025 convertible notes or 8% convertible senior notes due 2028 are outstanding on those respective dates and, in both cases, either the maturity date of the applicable notes has not been extended past Sept. 5, 2029 and the company has not received net cash proceeds which, together with no more than $15.6 million of cash on hand, is sufficient to fully redeem and discharge the 2025 or 2028 convertibles.

The loans bear interest at forward-looking term SOFR with a 2% floor plus 695 basis points.

Xeris is entitled to make interest-only payments on a quarterly basis until the maturity date or earlier prepayment of the loan.

During the term of the loan, Xeris is required to maintain certain minimum liquidity and revenue requirements.

There are prepayment penalties. Before the second anniversary of the closing date, the company would need to pay the make-whole amount. After the second year, the company would need to pay the prepayment amount times 5%. After the third anniversary, it would be the prepayment amount times 3%. After the fourth anniversary, there would be no penalty.

After repayment, the 2029 loans may not be reborrowed.

Evercore acted as financial adviser to Xeris.

The tranche 2 loans may only be used to redeem, if necessary, the 5% convertible senior notes due 2025 issued by Xeris Pharma. The proceeds of the tranche 1 loans will otherwise be used for general corporate purposes.

In conjunction with the agreement, the aggregate principal balance of $150 million plus all accrued interest outstanding under the company’s existing credit agreement was continued under the amended and restated agreement. This results in an increase of about $35 million to the company’s cash balance.

The Chicago-based specialty pharmaceutical company develops and commercialize ready-to-use injectable and infusible drug formulations.

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