JWCA advises IVERIC bio, Inc. on its $250 million term loan debt financing facility

July 2022 | Read press release

Transaction Background

IVERIC bio, Inc. (“IVERIC” or the “Company”) wanted to raise capital to help strengthen its balance sheet ahead of Phase 3 data, to solve any appearance of financing overhang, and to have access to non-dilutive options to fund the potential NDA filing and launch of Zimura in geographic atrophy. IVERIC engaged J. Wood Capital Advisors to advise on the financing.

Objectives:

• Secure non-dilutive, pre-Ph 3 data and pre-approval capital ahead of the potential launch of Zimura in 2023

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

• Strengthen balance sheet at an attractive cost of capital with the flexibility to extend cash runway to avoid any “financing overhang” as the Zimura program progresses

JWCA worked closely with IVERIC 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 IVERIC. Upon obtaining terms from lenders, JWCA:

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

• Negotiated with lenders to optimize pricing and terms from initial term sheets through final definitive documentation

Results

IVERIC 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