AQST - Aquestive Therapeutics Completes $45 Million Debt Refinancing | Benzinga
WARREN, N.J., Nov. 02, 2023 (GLOBE NEWSWIRE) -- Aquestive Therapeutics, Inc. (NASDAQ:AQST), a pharmaceutical company advancing medicines to bring meaningful improvement to patients' lives through innovative science and delivery technologies, today announced the refinancing of its existing debt facility.
The Company redeemed its 12.5% senior secured notes due 2025 (the "2019 Indenture") and entered into a new financing through the issuance of new 13.5% senior secured notes due 2028 (the "Notes"). The new financing of $45,000,000 under a new Indenture by a large leading institutional investor and affiliated entities (collectively, the "Note Holders") will be used by Aquestive to repay all outstanding notes issued under the 2019 Indenture, and otherwise for general corporate purposes. The Notes are senior secured obligations of Aquestive and will mature on November 1, 2028, unless earlier redeemed or repurchased in accordance with their terms. The Notes bear interest at a fixed rate of 13.5% per year, payable quarterly. Principal on the Notes will be repaid starting on June 30, 2026. The Notes contain no revenue or cash covenants, and no warrants for purchase of the Company's common stock were issued under the terms of the transaction.
In connection with the financing transaction, the Company entered into agreements (the "Royalty Agreements") with each of the Note Holders granting the Note Holders a tiered royalty between 1.0% and 2.0% of annual worldwide net sales of Anaphylm ™ (epinephrine) Sublingual Film for a period of eight years from the first sale of Anaphylm on a global basis. The Note Holders are also entitled to a tiered royalty between 1.0% to 2.0% of annual worldwide net sales of Libervant ™ (diazepam) Buccal Film until the earlier of (1) the first sale of ...