ESPR.png

JWCA acts as financial advisor and sole placement agent to Esperion Therapeutics on its $150 million secured term loan and $100 million convertible financing to refinance 79% of its existing convertible

december 2024 | read press release

Transaction Overview

Esperion Therapeutics, Inc. (“ESPR” or “the Company”) engaged J. Wood Capital Advisors (“JWCA”) to explore a refinancing of its convertible notes coming due in 2025. This was the second transaction by ESPR this year to restructure its balance sheet and address near-term maturities, following the monetization earlier in the year of the Company’s Daiichi Sankyo European royalty stream which helped fund the pay-off of an existing senior secured royalty lender

Esperion’s objectives were to:

  • Address near-term refinancing needs so the Company and investors can focus on the growth of the business following positive label expansion of NEXLETOL and NEXLIZET

  • Manage dilution by utilizing a mix of new term loan and a smaller convertible to address its existing 2025 convertible maturity

  • Avoid stock price risk by pricing the convertible overnight

As sole financial advisor and placement agent for the transaction, JWCA ran a competitive process to obtain the most company-friendly terms on the term loan and designed a convertible exchange in which a combination of cash and new convertible notes would be delivered to address the upcoming convertible maturity. In its role, JWCA:

  • Analyzed term loan proposals to help the Company select the one that best met its objectives

  • Led investor outreach and execution of convertible exchange​ and placement

  • Assisted the Company with investor messaging and documentation review

Results

Esperion addressed a large majority of its 2025 maturity by refinancing into a new 5-year term loan and 5.5-year convertible while issuing an additional ~$43 million in a new convertible for additional liquidity to support commercial growth

ESPR avoided stock price risk, as the exchange was executed overnight after a confidential marketing process with existing investors