Tarsus refinances debt with $200 million five-year credit facility

By Marisa Wong

Los Angeles, April 23 – Tarsus Pharmaceuticals, Inc. has secured $200 million of committed capital from funds associated with Pharmakon Advisors, LP, according to a press release.

Tarsus has elected to draw $75 million on the April 19 closing date, with the remaining $125 million of committed capital available at the company’s option in three tranches through specified time windows, the last ending in December 2025.

Specifically, the new five-year interest-only credit facility provides for three potential additional loan tranches in principal amounts up to $25 million, $50 million and $50 million, respectively, the latter two tranches available upon achievement of certain revenue thresholds.

The credit facility bears interest at a floating rate based on SOFR plus a margin of 675 basis points, subject to a 3.75% SOFR floor. Interest on the funded loan is paid quarterly in arrears until April 19, 2029, the maturity date, with the unpaid principal amount of the outstanding loan due and payable at maturity.

There is no warrant coverage to the lenders and no financial covenants associated with the financing.

Net proceeds to the company at closing will be about $40 million following the repayment of the existing credit facility, as well as fees and expenses associated with the transaction.

Armentum Partners was Tarsus’ financial adviser on this transaction.

Tarsus is a biopharmaceutical company based in Irvine, Calif.

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