Loan of the Week Snapshot #123

👓At a Glance

Borrower: Vera Therapeutics, Inc.

Lender: Oxford Finance

Deal Size: $500.0 million

Structure: Senior secured, multi-tranche term loan

Rate: Variable - greater of 1 month SOFR or 4.95%, plus 3.75% with an all-in floor of 8.70%

Term: 60 months with ability to extend an additional 12 months

Use of Proceeds: Support continued research and development expenses and pre and post approval commercial expenses

Source: Press Release

📷Borrower Snapshot

Sector: Health Care

Subsector: Biotechnology

Ownership: Public

Commercial Stage: Pre-commercial revenue

Business Overview: Vera Therapeutics is a late-stage biopharma company developing treatments for immune-mediated diseases, with a lead focus on IgA nephropathy (IgAN). Its lead asset, atacicept, recently delivered positive Phase 3 data, positioning the company for potential accelerated approval. Backed by strong clinical results and a clearly defined commercial path, Vera is targeting a multi-billion-dollar rare kidney disease market. The company exemplifies the type of clinical-stage borrower that structured credit lenders favor: high-impact science, clear near-term catalysts, and significant upside tied to regulatory and commercial execution.

⚙️Structure & Terms

Source: SEC 8-K

Commitment: $500.0 million

• $75.0 million funded at close
• $50.0 million available through December 31, 2026 (no milestones)
• $75.0 million available on accelerated approval of atacicept
• $50.0 million (contingent on net product revenue milestone)
• $50.0 million (contingent on net product revenue milestone)
• $200.0 million at borrower and lender’s discretion

Interest-only Period: ~50 months with ability to extend if TTM net product revenue targets are achieved

Maturity: June 1, 2030 or June 1, 2031 (maturity date can be extended if interest only extension milestone is achieved)

Rate: Variable - greater of 1 month SOFR or 4.95% plus 3.75% with a all-in floor of 8.70%

Upfront Deposit: $100.0k

Facility Fee: 0.75% of funded amount of each term loan

Final Payment Fee: 5%

Prepayment Fee: 2% prior to and including the 2nd anniversary; 1% after 2nd anniversary but prior to and including the 3rd anniversary; 0% thereafter

Covenants:

• Minimum liquidity
  • testing begins after March 31, 2027
  • when loan balance is below $200.0 million and market capitalization is below $1.0 billion
    • 60% of principal balance if BLA approval not achieved; 35% of principal balance if BLA approval has been achieved
• Loan coverage
  • commencing on date funded loan balance exceeds $200.0 million
    • maintain loan coverage of 1:1 unless market capitalization exceeds $1.25 billion
    • loan coverage is defined as quotient of a) the sum of trailing six month net product revenue plus unrestricted cash or cash equivalents, and b) the outstanding principal amount of the term loans

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