Vera Therapeutics Secures $500M Credit Facility with Lower Rates, Boosting Financial Flexibility
Author: Benzinga Newsdesk | June 03, 2025 05:34am
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.
Posted In: VERA
