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Verona Pharma Announces Amended Strategic Financing with Oaktree and OMERS

RIPSA interests repurchased

Term loan facility increased to $450 million with more favorable terms

Access to up to an additional $200 million

LONDON and RALEIGH, N.C., March 28, 2025 (GLOBE NEWSWIRE) -- Verona Pharma plc (NASDAQ:VRNA) ("Verona Pharma" or the "Company"), a biopharmaceutical company focused on respiratory diseases, has amended its existing strategic financing agreements by repaying the revenue interest purchase and sale agreement ("RIPSA") and increasing the debt facility to $450 million on improved terms with funds managed by Oaktree Capital Management, L.P. ("Oaktree") and OMERS Life Sciences ("OMERS") announced in May 2024.

"We are pleased that Oaktree and OMERS recognize the ongoing success of the Ohtuvayre™ (ensifentrine) launch and continued growth of Ohtuvayre prescriptions. This growth has allowed us to terminate the RIPSA and amend our term loan facility with Oaktree and OMERS, increasing our financial flexibility and simplifying our balance sheet," said David Zaccardelli, Pharm. D., President and Chief Executive Officer. "We continue to have access to up to $200 million under the term loan facility to support the Company's ongoing progress subject to certain conditions."

"We have been very impressed by the US launch of Ohtuvayre as a novel maintenance treatment for COPD," commented Aman Kumar, Co-Portfolio Manager for Oaktree's Life Sciences Lending platform. "We are delighted to continue our partnership with the Company and look forward to supporting them as they expand access to this important therapy for COPD patients globally."

The strategic financing arrangements were revised as follows:

RIPSA

Repurchased the $100 million obligation with reduced repayment fees

Term loan facility

Increased facility to $450 million and borrowed $125 million from an expanded Tranche C resulting in an aggregate of $250 million outstanding

Reduced the interest rate from 11% to 9.7% with a further reduction to 9.35% upon achievement of certain sales milestones

Added a provision allowing Verona Pharma to secure a working capital revolving credit facility of up to $75 million with a separate group

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