JWCA advises Rhythm Pharmaceuticals on its $750 million term loan facility

November 2026 | read press release

Transaction Background

Rhythm Pharmaceuticals, Inc. (“Rhythm” or “the Company”) wanted to raise capital to help fund fixed payments related to the amended terms of its Bivamelagon global license agreement with LG Chem and raise additional unfunded capital available at its option. The Company engaged J. Wood Capital Advisors to advise on the financing.

Objectives:

• Secure non-dilutive capital to finance its licensing agreement amendment

• Raise flexible capital that provides desired upfront amount with ability to draw meaningful additional capital as needed in the future

• Maximize financial and operational flexibility for the Company

• Amend the existing revenue interest agreement to remove debt-like covenants and default provisions

• Achieve a competitively low cost of capital

JWCA worked closely with Rhythm to evaluate financing vehicles that could best meet the Company’s objectives. Upon obtaining terms from lenders, JWCA:

• Analyzed proposed terms to help the Company select the one that best met its objectives from both an economic and non-economic standpoint

• Assisted the Company in negotiations with lenders to optimize overall terms from the initial term sheet stage through signing and closing of the agreement

Results

Rhythm successfully achieved best-available terms, pricing, and flexibility in its new term loan facility

Secured a right-sized initial draw and committed access to additional tranches of capital, providing optionality in the future