JWCA advises Corium, Inc. on its $235 million tranched term loan

September 2021 | Read press release

Transaction Background

Corium, Inc. (“Corium” or the “Company”), a private company wholly owned by Gurnet Point Capital (“GPC”), wanted to raise secured debt capital for general corporate purposes including to help fund the launch of its first approved product AZSTARYS. The Company engaged J. Wood Capital Advisors to advise on the financing.

Objectives:

• Minimize interest rate and all-in cost of capital while maximizing upfront and total proceeds with achievable milestones

• Maximize financial and operational flexibility for management

• Minimize revenue and liquidity covenants

• Establish a relationship with a reputable investor that can grow with the company

JWCA worked closely with Corium and GPC to identify structures that could meet the objectives of all stakeholders. JWCA then ran a process to identify lenders that could best help Corium achieve its objectives. Upon obtaining terms from lenders, JWCA:

• Negotiated with lenders on the Company’s behalf to obtain the best terms available

• Analyzed terms to help company select the proposal that best met its objectives

Results

Corium successfully executed the non-dilutive debt financing at best-available terms, pricing, and flexibility as a private company

Achieved a financing outcome that balanced the company’s objectives, with a sizable amount of flexible, low-cost capital