Esperion Therapeutics Announces $210M Financing

By Tamara Parker • Friday, December 13 15:16 • Permanent Link

Esperion, a biopharmaceutical company, recently announced a $210 million convertible debt financing. The company entered into exchange and subscription agreements with certain holders of its outstanding 4.00% convertible senior subordinated notes due 2025. As part of the agreements, Esperion will issue $100 million aggregate principal amount of its 5.75% convertible senior subordinated notes due 2030.

The exchange transactions will involve approximately $57.5 million principal amount of new notes, along with approximately $153.4 million in cash, issued in exchange for approximately $210.1 million principal amount of the 2025 notes. The subscription transactions will involve approximately $42.5 million principal amount of new notes for cash.

Following the closing of the exchange transactions, approximately $54.9 million in aggregate principal amount of 2025 notes will remain outstanding with terms unchanged. Esperion will not receive any cash proceeds from the exchange transactions but estimates that the gross cash proceeds from the subscription transactions will be approximately $42.5 million.

The new notes will represent the senior unsecured obligations of Esperion and will pay interest semi-annually at a rate of 5.75% per annum. The new notes will mature on June 15, 2030, unless earlier converted, redeemed, or repurchased. The initial conversion rate is 326.7974 shares of common stock per $1,000 principal amount of notes, representing an initial conversion price of approximately $3.06 per share of common stock.

The exchange transactions will be funded in part with proceeds from the company’s new $150 million senior secured term loan credit facility with Athyrium Capital Management, which was entered into on December 13, 2024.

Esperion engaged J. Wood Capital Advisors LLC as the exclusive placement agent for the new notes. The company emphasized that the new notes and any of its common stock issuable upon conversion of the new notes have not been registered under the securities act or under any state securities laws.

The market has reacted to these announcements by moving the company's shares -12.5% to a price of $2.23. For more information, read the company's full 8-K submission here.

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