JWCA advises Arcutis Biotherapeutics, Inc. on its $225 million tranched term loan

December 2021 | Read press release

Transaction Background

Arcutis Biotherapeutics, Inc. (“Arcutis” or the “Company”) wanted to raise capital to help strengthen its balance sheet, fund the potential launch of roflumilast cream for plaque psoriasis, and fund continued development in follow-on indications. Arcutis engaged J. Wood Capital Advisors to advise on the financing.

Objectives:

  • Secure non-dilutive, pre-approval capital ahead of catalysts in 2022, including the anticipated approval and launch of roflumilast cream for plaque psoriasis

  • Minimize financial covenants while maximizing financial and operational flexibility for management

  • Strengthen balance sheet at an attractive cost of capital and extend cash runway to avoid “financing overhang”

JWCA worked closely with Arcutis to identify investors and financing vehicles that could meet the company’s objectives. JWCA then ran a competitive process with lenders to obtain financing at the best possible pricing and terms for Arcutis. Upon obtaining terms from lenders, JWCA:

  • Analyzed proposals to help Arcutis select the one that best met its objectives

  • Negotiated with lenders to optimize pricing and terms

Results

Arcutis successfully executed the non-dilutive debt financing at best-available terms, pricing, and flexibility

Achieved a financing outcome that balanced the company’s objectives with sizeable tranches upfront and at approval