Akebia Therapeutics Secures $50M Loan

TL;DR

Akebia just drew down $50M on a new loan facility, with $100M more available.

AI Summary

On April 17, 2024, Akebia Therapeutics, Inc. entered into a loan and security agreement with Kreos Capital VIII (UK) Limited, drawing down $50 million under a term loan facility. This drawdown is part of a larger $150 million facility, with the remaining $100 million available for future drawdowns.

Why It Matters

This financing provides Akebia with additional capital, potentially supporting its ongoing operations and development of its pharmaceutical products.

Risk Assessment

Risk Level: medium — The company has taken on new debt, which increases its financial obligations and leverage.

Key Numbers

• $50.0M — Term Loan Drawdown (Initial amount borrowed from Kreos Capital)
• $150.0M — Total Facility Size (Maximum amount available under the loan agreement)

Key Players & Entities

• Akebia Therapeutics, Inc. (company) — Registrant
• Kreos Capital VIII (UK) Limited (company) — Lender
• $50 million (dollar_amount) — Amount drawn down
• $150 million (dollar_amount) — Total facility size
• April 17, 2024 (date) — Date of loan agreement and drawdown

FAQ

Key Financial Figures

• $0.00001 — ich registered Common Stock, par value $0.00001 per share AKBA The Nasdaq Capital Marke
• $55.0 m — the aggregate principal amount of up to $55.0 million, subject to certain customary con
• $37.0 m — Company access to an initial tranche of $37.0 million, which was funded on the Closing
• $8.0 million — dditional tranches available as follows $8.0 million available in a single draw through Dece
• $10.0 million — er 31, 2024 (the "Tranche B Loan"), and $10.0 million available in a single draw through Dece
• $7.5 million — the Tranche B Loan and net proceeds of $7.5 million were received on April 19, 2024, after

Filing Documents

• akba-20242304xkreosdrawdown.htm (8-K) — 26KB
• 0001517022-24-000035.txt ( ) — 27KB

From the Filing

Document UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 _____________________ FORM 8-K _____________________ CURRENT REPORT PURSUANT TO SECTION 13 OR 15(D) OF THE SECURITIES EXCHANGE ACT OF 1934 Date of Report (Date of earliest event reported) April 17, 2024 _____________________ AKEBIA THERAPEUTICS, INC. (Exact name of registrant as specified in its charter) _____________________ Delaware 001-36352 20-8756903 (State or other jurisdiction of incorporation) (Commission File Number) (IRS Employer Identification No.) 245 First Street Cambridge, Massachusetts 02142 (Address of principal executive offices) (Zip Code) Registrant's telephone number, including area code (617) 871-2098 NA (Former name or former address, if changed since last report) _____________________ Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) Securities registered pursuant to Section 12(b) of the Act Title of each class Trading symbol(s) Name of each exchange on which registered Common Stock, par value $0.00001 per share AKBA The Nasdaq Capital Market Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 ( 230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 ( 240.12b-2 of this chapter). Emerging growth company If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. Item 2.03. Creation of a Direct Financial Obligation or an Obligation under an Off-Balance Sheet Arrangement of a Registrant. As previously disclosed, Akebia Therapeutics, Inc. (the "Company") is party to an Agreement for the Provision of a Loan Facility (the "Loan Agreement"), dated January 29, 2024 (the "Closing Date"), with Kreos Capital VII (UK) Limited, which are funds and accounts managed by BlackRock Inc. The Loan Agreement provides for a senior secured term loan facility in the aggregate principal amount of up to $55.0 million, subject to certain customary conditions (the "Term Loan Facility"). The Loan Agreement provided the Company access to an initial tranche of $37.0 million, which was funded on the Closing Date. In addition to the initial tranche, the Term Loan Facility included additional tranches available as follows $8.0 million available in a single draw through December 31, 2024 (the "Tranche B Loan"), and $10.0 million available in a single draw through December 31, 2024 (the "Tranche C Loan"). On April 17, 2024, the Company elected to drawdown the Tranche B Loan and net proceeds of $7.5 million were received on April 19, 2024, after deducting debt issuance costs, fees, and expenses. Immediately following this $8.0 million drawdown, $10.0 million of borrowing capacity under the Tranche C Loan remained available under the Loan Agreement, subject to the terms and conditions set forth therein. The foregoing description of the Loan Agreement is qualified in its entirety by reference to the full text of the Loan Agreement which was filed as Exhibit 10.102 to the Annual Report on Form 10-K for the fiscal year ended December 31, 2023, filed by the Company on March 14, 2024. SIGNATURE Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized. AKEBIA THERAPEUTICS, INC. Date April 23, 2024 By s John P. Butler Name John P. Butler Title President and Chief Executive Officer

View Full Filing

View this 8-K filing on SEC EDGAR