Business & Finance
TherapeuticsMD Signs Binding Commitment Letter for USD 300m Non-Dilutive Term Loan Financing Facility with TPG Sixth Street Partners
22 April 2019 - - US-based women's healthcare company TherapeuticsMD, Inc. (NASDAQ: TXMD) has signed a binding commitment letter for a fully-negotiated USD 300m non-dilutive secured term loan financing facility with finance and investment business TPG Sixth Street Partners in strategic partnership with alternative asset firm TPG, the company said.

The TSSP term loan facility will be available to the company in three tranches:

USD 200m will be immediately available upon the closing of the facility;

USD 50m will be available upon the designation of ANNOVERA as a new category of birth control by the US Food and Drug Administration on or prior to December 31, 2019; and

USD 50m will be available upon TherapeuticsMD achieving USD 11m in net revenues from IMVEXXY, BIJUVA and ANNOVERA for the fourth quarter of 2019

TherapeuticsMD anticipates that the TSSP term loan facility will close on or before May 10, 2019, subject to the satisfaction of certain customary conditions precedent.

Borrowings under the TSSP term loan facility will accrue interest at 3-month LIBOR plus 7.75%, subject to a LIBOR floor of 2.70%.

Interest on amounts borrowed under the facility will be payable quarterly.

The outstanding principal amount of the term loan facility will be payable in four equal quarterly installments beginning on June 30, 2023, with the term loan facility maturing on March 31, 2024.

TherapeuticsMD has notified its existing lender, MidCap Financial Trust, managed by Apollo Capital Management, L.P., that the company will be terminating its existing term loan credit and security agreement.

A portion of the initial tranche of the new TSSP facility will be used to repay amounts outstanding under the company's existing term loan credit and security agreement with MidCap Financial Trust.

TherapeuticsMD is focused on developing and commercialising novel products exclusively for women. These products are designed to address the unique changes and challenges women experience through the various stages of their lives with a therapeutic focus in family planning, reproductive health, and menopause management.