L.O.T.W. #123 - Vera Therapeutics - meeting again with Oxford Finance to upsize existing credit facility
Structured credit provided by Oxford Finance
Vera Therapeutics refinanced its existing $50 million term loan with a new $500 million multi-tranche structured credit facility. The facility was secured following the positive Phase 3 readout from the ORIGIN 3 trial of atacicept for IgA nephropathy (IgAN).
The new structure reduces Vera’s cost of capital by 320 basis points, extends the interest-only period beyond 2026, and adds significant financing flexibility to support both pre-approval readiness and post-approval commercialization.
👓At a Glance
Borrower: Vera Therapeutics, Inc.
Lender: Oxford Finance
Deal Size: $500.0 million
Structure: Senior secured, multi-tranche term loan
Rate: Variable - greater of 1 month SOFR or 4.95%, plus 3.75% with an all-in floor of 8.70%
Term: 60 months with ability to extend an additional 12 months
Use of Proceeds: Support continued research and development expenses and pre and post approval commercial expenses
Source: Press Release
📷Borrower Snapshot
Sector: Health Care
Subsector: Biotechnology
Ownership: Public
Commercial Stage: Pre-commercial revenue
Business Overview: Vera Therapeutics is a late-stage biopharma company developing treatments for immune-mediated diseases, with a lead focus on IgA nephropathy (IgAN). Its lead asset, atacicept, recently delivered positive Phase 3 data, positioning the company for potential accelerated approval. Backed by strong clinical results and a clearly defined commercial path, Vera is targeting a multi-billion-dollar rare kidney disease market. The company exemplifies the type of clinical-stage borrower that structured credit lenders favor: high-impact science, clear near-term catalysts, and significant upside tied to regulatory and commercial execution.
⚙️Structure & Terms
Source: SEC 8-K
Commitment: $500.0 million
$75.0 million funded at close
$50.0 million available through December 31, 2026 (no milestones)
$75.0 million available on accelerated approval of atacicept
$50.0 million (contingent on net product revenue milestone)
$50.0 million (contingent on net product revenue milestone)
$200.0 million at borrower and lender’s discretion
Interest-only Period: ~50 months with ability to extend if TTM net product revenue targets are achieved
Maturity: June 1, 2030 or June 1, 2031 (maturity date can be extended if interest only extension milestone is achieved)
Rate: Variable - greater of 1 month SOFR or 4.95% plus 3.75% with a all-in floor of 8.70%
Upfront Deposit: $100.0k
Facility Fee: 0.75% of funded amount of each term loan
Final Payment Fee: 5%
Prepayment Fee: 2% prior to and including the 2nd anniversary; 1% after 2nd anniversary but prior to and including the 3rd anniversary; 0% thereafter
Covenants:
Minimum liquidity
testing begins after March 31, 2027
when loan balance is below $200.0 million and market capitalization is below $1.0 billion
60% of principal balance if BLA approval not achieved; 35% of principal balance if BLA approval has been achieved
Loan coverage
commencing on date funded loan balance exceeds $200.0 million
maintain loan coverage of 1:1 unless market capitalization exceeds $1.25 billion
loan coverage is defined as quotient of a) the sum of trailing six month net product revenue plus unrestricted cash or cash equivalents, and b) the outstanding principal amount of the term loans