Zevra Therapeutics, Inc. announced that it has entered into a new credit facility provided by leading biotech investors. Led by Perceptive Advisors and Healthcare Royalty, the new credit facility provides up to $100 million in committed capital in three tranches: an initial draw of $60 million at closing, a second tranche of up to $20 million available until October 5, 2025, and a third tranche of up to $20 million which becomes available upon approval of arimoclomol, the Company?s product candidate for the treatment of Niemann Pick disease Type C (NPC), in each case subject to certain terms and conditions. As part of this transaction, the Company has retired its combined existing debt of approximately $43.1 million.

Net proceeds from the initial $60 million draw, after repayment of the existing debt, original issue discount, and fees and expenses associated with this transaction, are approximately $14.0 million. The new five-year credit facility bears interest at the 3-month Secured Overnight Financing Rate (SOFR) (subject to a 4.00% per annum floor), plus 7.00% per annum, which all-in interest rate is currently 12.33% per annum. Zevra has the option to pay up to 25% of the interest on principal amounts outstanding in-kind through and including March 31, 2026, subject to certain terms and conditions.

The facility is interest-only throughout the five-year term of the facility, with all outstanding principal due on the maturity date of April 5, 2029, and includes certain customary covenants and obligations.