WASHINGTON (dpa-AFX) - Biopharmaceutical company Axsome Therapeutics, Inc. (AXSM) announced that it has entered into a $570 million term loan and revolving credit facility with funds managed by Blackstone Life Sciences and Blackstone Credit & Insurance (Blackstone). Concurrent with this new facility, Axsome has retired its previous term loan with Hercules Capital.
The company noted that the improved financial terms and expected use of the new facility are expected to result in a significant reduction in interest expense.
The new agreement with Blackstone simultaneously expands Axsome's total available credit facility by more than $200 million, and significantly reduces our cost of capital.
The new $570 million facility consists of a $500 million term loan facility and a $70 million revolving credit facility. Upon closing of the agreement, the Company drew down a total of $120 million from the term loan facility which was used to retire the previous term loan with Hercules Capital.
Under the terms of the new term loan facility, an additional $250 million may be drawn at the Companys option, with an additional $200 million available subject to the approval of Blackstone.
The new facility bears interest at a calculated SOFR variable rate plus 4.75% for the term loan, and SOFR variable rate plus 4.0% for the revolving credit facility. The facility matures in May 2030 and has an interest-only payment period of 60 months.
Concurrent with the closing of the agreement, Blackstone purchased $15 million of Axsome common stock at the 30-day volume weighted average price per share equal to $107.14.
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