Liquidia Corporation announced the closing of a debt facility on January 7, 2022, with Silicon Valley Bank (SVB) which provides Liquidia with up to $40.0 million in term loans of which the first $20.0 million was funded at closing. Liquidia initially entered a debt facility with SVB in March 2021 that provided up to $20.5 million in term loans of which $10.5 million had been funded to date. Under the terms of the new debt facility, SVB will make loans available in three tranches.

Proceeds from the first tranche of $20.0 million have been used to retire Liquidia's existing SVB term debt and adds $9.5 million of cash to Liquidia's balance sheet. The first tranche also provides the option of drawing an additional $5.0 million at Liquidia's discretion through December 31, 2022. A second tranche of $7.5 million is available to fund immediately upon receipt of final and unconditional approval for YUTREPIA™ (treprostinil) inhalation powder by December 31, 2022.

The third tranche of $7.5 million will be available through August 31, 2023, upon generating trailing six-month net product sales of YUTREPIA of $27.5 million by June 30, 2023. The debt facility will mature on December 1, 2025 and will consist of interest-only payments through December 31, 2023, unless the third tranche milestone is achieved, and then interest-only through December 31, 2024.