Aquestive Therapeutics Inc. (NASDAQ: AQST) announced the completion of a $150 million debt refinancing with funds managed by Oaktree Capital Management, replacing its existing debt facility.

The pharmaceutical company received $55 million at closing, which was used primarily to repay its existing $45 million loan plus associated fees. The new facility includes additional tranches tied to specific milestones: $20 million becomes available upon FDA approval of Anaphylm and satisfaction of other conditions, $25 million upon achieving specified sales milestones, and up to $50 million with mutual consent of the lenders and company.

The five-year facility requires only interest payments, with all principal amounts due at maturity. This structure eliminates $45 million in principal debt repayments over the next three years and reduces the interest rate compared to the previous agreement.

"The new $150 million debt facility will help Aquestive drive growth for years to come," said Daniel Barber, CEO of Aquestive Therapeutics. The agreement also completes pre-approval requirements under the company's strategic funding agreement with RTW Investments.

Anaphylm is an investigational sublingual film treatment for severe allergic reactions, including anaphylaxis. The product candidate is currently under FDA review.

Rahul Anand, Managing Director of Life Sciences Lending at Oaktree, stated the firm believes "Anaphylm has the potential to be a truly transformative rescue treatment for patients suffering from severe allergic reactions."

Since 2020, funds managed by Oaktree have committed more than $6 billion across 45 investments in healthcare companies. Cantor Fitzgerald served as sole placement agent to Aquestive in the transaction.