Ardelyx amends loan agreement to draw $50 million and secures future options

Ardelyx, Inc. (NASDAQ:ARDX), a $1 billion market cap biopharmaceutical company currently trading at $4.19, announced on Monday that it entered into a Fifth Amendment to its Loan and Security Agreement with SLR Investment Corp. and other lenders. According to a statement in a Securities and Exchange Commission filing, the amendment provided for an immediate draw of $50 million in principal, referred to as the Term E Loan. InvestingPro analysis suggests the stock is currently undervalued based on its Fair Value model.

The company also secured options to draw up to an additional $100 million in committed senior secured term loans. These are divided into two $50 million tranches: the first available at Ardelyx’s discretion through June 30, 2026, and the second available through December 20, 2026.

The interest rate for the Term E Loan is set at 4.00% plus 0.022% and the 1-month SOFR reference rate, with a SOFR floor of 4.70%. The incremental term loans, if drawn, will carry an interest rate of 4.95% plus the 1-month SOFR reference rate, subject to a SOFR floor of 3.50%.

Upon closing the amendment, Ardelyx paid a $250,000 fee for the Term E Loan and a $1 million facility fee for the incremental term loans.

The Term E Loan and existing term loans mature on July 1, 2028, with interest-only payments permitted through maturity. The incremental term loans, if drawn, will mature on July 1, 2030, and will also allow interest-only payments through their maturity date.

Ardelyx is obligated to pay a final fee equal to 4.95% of the Term E Loan principal upon maturity, acceleration, or prepayment. For the incremental term loans, a non-refundable final fee of 3.45% of the original principal will be due upon final termination, acceleration, prepayment, or maturity.

This information is based on a press release statement included in Ardelyx’s SEC filing. For deeper insights into Ardelyx’s financial health and detailed analysis, investors can access the comprehensive Pro Research Report, available exclusively on InvestingPro, which covers this and 1,400+ other US stocks with expert analysis and actionable intelligence.

In other recent news, Ardelyx, Inc. reported its first-quarter 2025 earnings with a net loss of $0.17 per share, missing the expected loss of $0.11 per share. The company generated $74.1 million in revenue, falling short of the projected $78.09 million, despite a 61% year-over-year growth driven by strong sales of IBSRELA and XPHOZAH. H.C. Wainwright initiated coverage on Ardelyx with a buy rating and a $10.00 price target, highlighting the company’s successful commercialization efforts. Conversely, Raymond (NSE:RYMD) James downgraded Ardelyx from "Strong Buy" to "Outperform" and lowered the price target from $13.00 to $11.00, citing concerns over the growth of Ardelyx’s key franchises. The company also announced executive changes, promoting Mike Kelliher to Chief Business Officer and appointing James P. Brady as Chief Human Resources Officer. Ardelyx presented new data on IBSRELA at the Digestive Disease Week Conference, emphasizing its benefits for patients with irritable bowel syndrome with constipation. The company remains optimistic about future sales, projecting IBSRELA net sales for 2025 to be between $240 million and $250 million.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.