aibioEvolus signs amended loan agreement with $150,000,000 first tranche to refinance debt
Tickers EOLS
Evolus signed term loans of up to $250,000,000 in three tranches, with $150,000,000 advanced at the effective date. The loans carry 3-month SOFR plus 5.0%, with a 3.50% floor, and mature five years after the first tranche. Early repayment carries an exit payment of 2% of principal prepaid.
Key facts
- Company
- Evolus, Inc. (NASDAQ: EOLS)
- News type
- Debt Financing
- Primary source
- Evolus, Inc. Form 8-K filed May 5, 2025 (SEC EDGAR)
Evolus, Inc. (Nasdaq: EOLS) entered into an amended and restated loan agreement on May 5, 2025, under which its lenders agreed to make term loans of up to $250,000,000 in three tranches. The first tranche, $150,000,000, is advanced on the effective date. The company says it will use the money to refinance its existing loan facility and for general corporate and working capital needs, according to its Form 8-K.
The lenders are BPCR Limited Partnership and BioPharma Credit Investments V (Master) LP, and BioPharma Credit PLC is collateral agent for them. The 8-K says the agreement amends and restates in its entirety a loan agreement dated December 14, 2021, between the same parties. A press release furnished with the 8-K says the facility is with funds managed by Pharmakon Advisors, LP, and replaces an existing $125 million credit agreement with a new $250 million facility. The release says Leerink Partners acted as exclusive financial advisor to Evolus. Neither filing names a law firm for either side.
The three tranches
The first tranche, the Tranche A Loan, is subject to the company entering into an amended and restated guaranty and security agreement and delivering other customary items. The second and third tranches, the Tranche B and Tranche C Loans, are each up to $50,000,000 but not less than $25,000,000. They are advanced at the company's election, on the agreement's terms. The release says the company may draw them through December 31, 2026.
The term loans mature on the fifth anniversary of the Tranche A closing date.
Interest and fees
The loans bear interest at 3-month SOFR plus 5.0% a year, with a SOFR floor of 3.50%. Interest is paid on the last day of each quarter, starting in the quarter after the Tranche A closing. The release says the new facility lowers the borrowing cost by 350 basis points at current interest rates. The filings do not give the previous rate, so that reduction cannot be measured from them.
Evolus may prepay the loans in whole or in part, in amounts of at least $20,000,000. Each prepayment carries an exit consideration payment equal to 2% of the principal prepaid. It also carries a prepayment premium of 3% of the principal prepaid if made before the first anniversary of the applicable tranche closing date. If the loans are accelerated after a default, the company must immediately pay all principal, interest, exit consideration and the applicable premium.
The release says the company "eliminated exit fees from the existing facility." The new facility carries an exit payment on every early repayment.
Security and covenants
Under the guaranty and security agreement, Evolus will grant the collateral agent a security interest in substantially all of its personal property, rights and assets, to secure the amounts owed to the lenders. The agreement contains customary affirmative and restrictive covenants. The 8-K states that the agreement does not require the company to keep a minimum cash balance or to reach minimum revenues or earnings.
What the company says
Chief Executive Officer David Moatazedi signed the 8-K. The release quotes Chief Financial Officer Sandra Beaver calling the transaction "non-dilutive," meaning it does not issue new shares. The release says the refinancing means Evolus will no longer have to make principal payments in 2026, and that the loan matures five years from funding.
The release says the refinancing improves current cash generation and gives access to additional capacity. Neither the 8-K nor the release gives a cash balance or profit figure to test that claim.
About Evolus
Evolus is based in Newport Beach, California, and is incorporated in Delaware. The release describes Jeuveau as the first and only neurotoxin dedicated exclusively to aesthetics, and Evolysse as a collection of injectable hyaluronic acid gels. The risk factors in its annual report say the Medytox settlement agreements will continue to reduce its profitability, and that it relies on licensing agreements with Daewoong Pharmaceutical Co. Ltd and Symatese.
What comes next
The company may draw the Tranche B and Tranche C loans through December 31, 2026. It intends to file the agreement as an exhibit to its quarterly report for the quarter ending June 30, 2025.