Xeris Biopharma Holdings (NASDAQ:XERS) has bolstered its financial position through the refinancing of its debt with Hayfin Capital Management LLP, securing substantial capital upfront while reducing borrowing interest rates.
Under this agreement, Xeris secured $200 million in capital upfront, with the option to access an additional $15.2 million to redeem its outstanding convertible senior notes due in 2025.
The transaction allows Xeris to reduce borrowing interest rates by 2.05% annually.
The terms of the new debt facility include an immediate drawdown of $200 million to repay existing obligations to Hayfin, resulting in a substantial boost to Xeris’ cash reserves. The facility, which spans five years, carries an interest rate of 6.95% along with provisions for interest-only payments until maturity.
Furthermore, Xeris must adhere to specific liquidity and revenue benchmarks throughout the loan term.
“This upsized facility, along with cash generation from our existing products and partnerships, allows us greater flexibility to continue to invest in the growth of our business,” Xeris CFO Steven Pieper said in a statement.
Pieper highlighted Hayfin's commitment as a supportive partner in Xeris' expansion endeavors.
Andrew Merrill, Managing Director of Healthcare at Hayfin, echoed enthusiasm for the continued partnership with Xeris.
“Since our initial engagement two years ago, Xeris has demonstrated its ability to develop and bring to market products with clear, valuable benefits to patients, which also garner strong market adoption. These compelling attributes are hallmarks of our lending strategy and give us confidence to continue supporting Xeris’ strong growth.”
Separately, Xeris disclosed its financial performance for the fourth quarter and full year of 2023.
The company reported a surge in product revenue, with a 40% increase, along with significant advancements in its internal pipeline and partnership programs.
For 4Q 2023, Xeris posted total revenue of $44.4 million, a 34% jump from the comparable year-ago quarter.
Total revenue for full-year 2023 came in at $163.9 million, up nearly 49% from the 2022 financial year.
Looking ahead, Xeris anticipates further revenue growth in 2024, projecting figures between $170 million to $200 million.
Despite increased costs in areas such as research and development and selling, general, and administrative expenses, Xeris managed to mitigate losses, reporting a net loss of $13.4 million for the fourth quarter and $62.3 million for the full year.
CEO Paul Edick called 2023 “another year of exceptional performance and growth” for the company.
“We executed on all fronts: our commercial products grew over 40%; our internal pipeline program, XP-8121, progressed through Phase 2; and our partnership programs made significant advancements, further validating our XeriJect technology,” Edick said.
“The momentum continues in 2024 as we expect to grow total revenue in the range of $170 million to $200 million. This double-digit revenue growth, coupled with our recent debt refinancing and continued disciplined cash management, will allow us to further invest in all aspects of our business.”
The company expects to end 2024 with a cash position of $55 million to $75 million.