Third Amendment to Credit Agreement dated October 2, 2023
CERTAIN CONFIDENTIAL INFORMATION CONTAINED IN THIS DOCUMENT, MARKED BY [***], HAS BEEN OMITTED BECAUSE IT IS NOT MATERIAL AND IS THE TYPE THAT THE REGISTRANT TREATS AS PRIVATE AND CONFIDENTIAL.
EXHIBIT 10.1
THIRD AMENDMENT TO Credit agreement AND guaranty
This Third Amendment to Credit Agreement and Guaranty (this “Amendment”) is made as of October 2, 2023, by and among IMPEL PHARMACEUTICALS INC., a Delaware corporation, as borrower (“Borrower”), the Lenders party to the Credit Agreement (as defined below) (the “Lenders”), OAKTREE FUND ADMINISTRATION, LLC, in its capacity as administrative agent for the Lenders (the “Administrative Agent”).
WHEREAS, the Borrower, the Administrative Agent and the Lenders party thereto previously entered into that certain Credit Agreement and Guaranty, dated as of March 17, 2022 (including the exhibits and other attachments thereto, as amended by that certain First Amendment, dated as of August 21, 2023, and that certain Second Amendment, dated as of September 5, 2023, the “Existing Credit Agreement”, and as further amended by this Amendment, the “Credit Agreement”);
WHEREAS, the Borrower has advised the Administrative Agent that certain Events of Default have occurred and are continuing under the Existing Credit Agreement due to: (i) the Borrower’s failure to deliver the materials required pursuant to Section 8.01(k) (Financial Statements and Other Information) with respect to the week ending September 15, 2023; (ii) the Borrower’s failure to timely satisfy the milestones on September 22, 2023 pursuant to Section 8.14 (Milestones); and (iii) the Borrower’s failure to comply with Section 10.02 (Minimum Net Revenue and Product Units Sold) for the three-week periods ended on September 15, 2023, September 22, 2023 and September 29, 2023 (the “Specified Defaults”);
WHEREAS, the Borrower has advised the Administrative Agent that the Borrower may fail to comply with Section 10.02 (Minimum Net Revenue and Product Units Sold) for the three-week period ended on October 6, 2023 and has requested that the Majority Lenders waive compliance with Section 10.02 for the three week period ended on October 6, 2023 (the “Additional Waiver”);
WHEREAS, upon an Event of Default the Majority Lenders may instruct the Administrative Agent to take certain remedies upon such Event of Default;
WHEREAS, the Borrower is requesting the Majority Lenders and Administrative Agent to waive the Specified Defaults and grant the Additional Waiver upon the terms and subject to the conditions of this Amendment;
WHEREAS, Majority Lenders and Administrative Agent have agreed to a limited waiver of the Specified Defaults and to grant the Additional Waiver on the terms and conditions set forth herein;
WHEREAS, the Borrower, the Administrative Agent and the Lenders have agreed to amend the Existing Credit Agreement on the terms and subject to the conditions set forth herein.
NOW, THEREFORE, for and in consideration of the above premises and other good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged by the parties hereto, each of the Borrower, the Administrative Agent and the Lenders party hereto hereby covenants and agrees as follows:
“Immediately upon receipt by any Obligor of any Prepayment Proceeds, the Borrower shall prepay the Tranche B Term Loans plus the Tranche B Return Shortfall in an amount equal to 100% of such Prepayment Proceeds until the outstanding Tranche B Term Loans and Tranche B Return Shortfall have been paid in full.”
“Section 3.04 Commitment Termination. The Tranche A Commitment shall terminate automatically without further action upon the making by the Lenders of the Tranche A Term Loans on the Second Amendment Effective Date. The Tranche B Commitment shall be automatically and permanently reduced on a dollar-for-dollar basis by (a) the amount of Tranche B Term Loans made from time to time, and (b) the amount of any Prepayment Proceeds in excess of amounts applied to mandatory prepayments pursuant to Section 3.03(b)(ii).”
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“Section 8.20 Equity Financing. Subject to applicable Law and the fiduciary duties of the Borrower’s board of directors, including securities laws and disclosure requirements, the Borrower shall use best efforts to consummate primary equity financings for the sale of common stock on or prior to October 31, 2023, whether through at-the-market offerings, underwritten offerings or otherwise. In the event the Borrower receives aggregate net cash proceeds from one or more such equity financings after the Third Amendment Effective Date that exceed $5,000,000 (such excess proceeds, “Excess Equity Proceeds”), the Borrower shall apply fifty percent (50%) of such Excess Equity Proceeds (such fifty percent of the Excess Equity Proceeds, the “Prepayment Proceeds”) to repay Tranche B Term Loans in accordance with Section 3.03(b)(ii) and, to the extent such Prepayment Proceeds exceed the outstanding Tranche B Term Loans plus Tranche B Return Shortfall, the remaining Tranche B Commitments shall be automatically and permanently reduced on a dollar-for-dollar basis by the amount of such excess. In the event that the Borrower is unable to raise at least $5,000,000 in aggregate net cash proceeds through at-the-market offerings prior to October 31, 2023, or the Borrower and the Majority Lenders mutually agree, acting reasonably and in good faith, that the Borrower will not be able to raise such amount through at-the-market offerings by such time, the Borrower will use its best efforts to engage a financial advisor to assist the Borrower, subject to applicable Law and the fiduciary duties of the Borrower’s board of directors, with an underwritten equity offering or other common equity financing transaction on terms acceptable to the Majority Lenders; provided that the Borrower shall not be required to agree to any such engagement that would require the Borrower to pay material fees to such advisor that are not contingent upon the consummation of a successful equity raise.”
“8.21 Independent Director. On or prior to October 16, 2023, the Borrower shall cause at least one individual approved by the Administrative Agent and Majority Lenders to be appointed to the board of directors of the Borrower and to remain on the board of directors at all times thereafter (the “Independent Director”). The Independent Director will be entitled to reasonable and customary compensation and indemnification arrangements at the sole expense of the Borrower. The Independent Director shall have the right to serve on all committees or subcommittees, including any committees overseeing, coordinating or implementing matters relating to the Borrower’s capital structure, any restructuring, any equity raise and any sale or business combination transaction. If any Independent Director resigns, is removed or is unable to continue service for any reason, the Borrower shall cause the prompt appointment of a replacement Independent Director acceptable to the Administrative Agent and Majority Lenders.”
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““Independent Director” has the meaning set forth in Section 8.21.”
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[SIGNATURE PAGES FOLLOW]
8
[Signature Page to Third Amendment]
BORROWER:
IMPEL PHARMACEUTICALS INC. | ||
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By: | /s/ Adrian Adams | |
| Name: | Adrian Adams |
| Title: | Chief Executive Officer |
[Signature Page to Third Amendment]
ADMINISTRATIVE AGENT:
OAKTREE FUND ADMINISTRATION, LLC
By: Oaktree Capital Management, L.P. Its: Managing Member
By: /s/ Matthew Stewart Name: Matthew Stewart
Title: Managing Director
By:/s/ Mary Gallegly Name: Mary Gallegly
Title: Managing Director
[Signature Page to Third Amendment]
LENDERS:
OAKTREE-TCDRS STRATEGIC CREDIT, LLC
By: Oaktree Capital Management, L.P.
Its: Manager
By: /s/ Matthew Stewart
Name: Matthew Stewart
Title: Managing Director
By: /s/ Mary Gallegly
Name: Mary Gallegly
Title: Managing Director
Address for Notices:
Oaktree Fund Administration, LLC 333 S. Grand Avenue, 28th Fl.
Los Angeles, CA 90071 Attn: Oaktree Agency
Email: ***@***
With a copy to:
Oaktree Capital Management, L.P. 333 S. Grand Avenue, 28th Fl.
Los Angeles, CA 90071 Attn: Aman Kumar
Email: ***@***
With a copy to:
Sullivan & Cromwell LLP 125 Broad Street
New York, NY 10004 Attn: Ari B. Blaut
Email: ***@***
[Signature Page to Third Amendment]
OAKTREE-FORREST MULTI-STRATEGY, LLC
By: Oaktree Capital Management, L.P.
Its: Manager
By: /s/ Matthew Stewart
Name: Matthew Stewart
Title: Managing Director
By: /s/ Mary Gallegly
Name: Mary Gallegly
Title: Managing Director
Address for Notices:
Oaktree Fund Administration, LLC 333 S. Grand Avenue, 28th Fl.
Los Angeles, CA 90071 Attn: Oaktree Agency
Email: ***@***
With a copy to:
Oaktree Capital Management, L.P. 333 S. Grand Avenue, 28th Fl.
Los Angeles, CA 90071 Attn: Aman Kumar
Email: ***@***
With a copy to:
Sullivan & Cromwell LLP 125 Broad Street
New York, NY 10004 Attn: Ari B. Blaut
Email: ***@***
[Signature Page to Third Amendment]
OAKTREE-TBMR STRATEGIC CREDIT FUND C, LLC
By: Oaktree Capital Management, L.P.
Its: Manager
By: /s/ Matthew Stewart
Name: Matthew Stewart
Title: Managing Director
By: /s/ Mary Gallegly
Name: Mary Gallegly
Title: Managing Director
Address for Notices:
Oaktree Fund Administration, LLC 333 S. Grand Avenue, 28th Fl.
Los Angeles, CA 90071 Attn: Oaktree Agency
Email: ***@***
With a copy to:
Oaktree Capital Management, L.P. 333 S. Grand Avenue, 28th Fl.
Los Angeles, CA 90071 Attn: Aman Kumar
Email: ***@***
With a copy to:
Sullivan & Cromwell LLP 125 Broad Street
New York, NY 10004 Attn: Ari B. Blaut
Email: ***@***
[Signature Page to Third Amendment]
OAKTREE-TBMR STRATEGIC CREDIT FUND F, LLC
By: Oaktree Capital Management, L.P.
Its: Manager
By: /s/ Matthew Stewart
Name: Matthew Stewart
Title: Managing Director
By: /s/ Mary Gallegly
Name: Mary Gallegly
Title: Managing Director
Address for Notices:
Oaktree Fund Administration, LLC 333 S. Grand Avenue, 28th Fl.
Los Angeles, CA 90071 Attn: Oaktree Agency
Email: ***@***
With a copy to:
Oaktree Capital Management, L.P. 333 S. Grand Avenue, 28th Fl.
Los Angeles, CA 90071 Attn: Aman Kumar
Email: ***@***
With a copy to:
Sullivan & Cromwell LLP 125 Broad Street
New York, NY 10004 Attn: Ari B. Blaut
Email: ***@***
[Signature Page to Third Amendment]
OAKTREE-TBMR STRATEGIC CREDIT FUND G, LLC
By: Oaktree Capital Management, L.P.
Its: Manager
By: /s/ Matthew Stewart
Name: Matthew Stewart
Title: Managing Director
By: /s/ Mary Gallegly
Name: Mary Gallegly
Title: Managing Director
Address for Notices:
Oaktree Fund Administration, LLC 333 S. Grand Avenue, 28th Fl.
Los Angeles, CA 90071 Attn: Oaktree Agency
Email: ***@***
With a copy to:
Oaktree Capital Management, L.P. 333 S. Grand Avenue, 28th Fl.
Los Angeles, CA 90071 Attn: Aman Kumar
Email: ***@***
With a copy to:
Sullivan & Cromwell LLP 125 Broad Street
New York, NY 10004 Attn: Ari B. Blaut
Email: ***@***
[Signature Page to Third Amendment]
OAKTREE-TSE 16 STRATEGIC CREDIT, LLC
By: Oaktree Capital Management, L.P.
Its: Manager
By: /s/ Matthew Stewart
Name: Matthew Stewart
Title: Managing Director
By: /s/ Mary Gallegly
Name: Mary Gallegly
Title: Managing Director
Address for Notices:
Oaktree Fund Administration, LLC 333 S. Grand Avenue, 28th Fl.
Los Angeles, CA 90071 Attn: Oaktree Agency
Email: ***@***
With a copy to:
Oaktree Capital Management, L.P. 333 S. Grand Avenue, 28th Fl.
Los Angeles, CA 90071 Attn: Aman Kumar
Email: ***@***
With a copy to:
Sullivan & Cromwell LLP 125 Broad Street
New York, NY 10004 Attn: Ari B. Blaut
Email: ***@***
[Signature Page to Third Amendment]
INPRS STRATEGIC CREDIT HOLDINGS, LLC
By: Oaktree Capital Management, L.P.
Its: Manager
By: /s/ Matthew Stewart
Name: Matthew Stewart
Title: Managing Director
By: /s/ Mary Gallegly
Name: Mary Gallegly
Title: Managing Director
Address for Notices:
Oaktree Fund Administration, LLC 333 S. Grand Avenue, 28th Fl.
Los Angeles, CA 90071 Attn: Oaktree Agency
Email: ***@***
With a copy to:
Oaktree Capital Management, L.P. 333 S. Grand Avenue, 28th Fl.
Los Angeles, CA 90071 Attn: Aman Kumar
Email: ***@***
With a copy to:
Sullivan & Cromwell LLP 125 Broad Street
New York, NY 10004 Attn: Ari B. Blaut
Email: ***@***
[Signature Page to Third Amendment]
OAKTREE GILEAD INVESTMENT FUND AIF (DELAWARE), L.P.
By: Oaktree Fund AIF Series, L.P. – Series T
Its: General Partner
By: Oaktree Fund GP AIF, LLC
Its: Managing Member
By: Oaktree Fund GP III, L.P.
Its: General Partner
By: /s/ Matthew Stewart
Name: Matthew Stewart
Title: Authorized Signatory
By: /s/ Mary Gallegly
Name: Mary Gallegly
Title: Authorized Signatory
Address for Notices:
Oaktree Fund Administration, LLC 333 S. Grand Avenue, 28th Fl.
Los Angeles, CA 90071 Attn: Oaktree Agency
Email: ***@***
With a copy to:
Oaktree Capital Management, L.P. 333 S. Grand Avenue, 28th Fl.
Los Angeles, CA 90071 Attn: Aman Kumar
Email: ***@***
With a copy to:
Sullivan & Cromwell LLP 125 Broad Street
New York, NY 10004 Attn: Ari B. Blaut
Email: ***@***
[Signature Page to Third Amendment]
OAKTREE SPECIALTY LENDING CORPORATION
By: Oaktree Fund Advisors, LLC
Its: Investment Adviser
By: /s/ Matthew Stewart
Name: Matthew Stewart
Title: Managing Director
By: /s/ Mary Gallegly
Name: Mary Gallegly
Title: Managing Director
Address for Notices:
Oaktree Fund Administration, LLC 333 S. Grand Avenue, 28th Fl.
Los Angeles, CA 90071 Attn: Oaktree Agency
Email: ***@***
With a copy to:
Oaktree Capital Management, L.P. 333 S. Grand Avenue, 28th Fl.
Los Angeles, CA 90071 Attn: Aman Kumar
Email: ***@***
With a copy to:
Sullivan & Cromwell LLP 125 Broad Street
New York, NY 10004 Attn: Ari B. Blaut
Email: ***@***
[Signature Page to Third Amendment]
OAKTREE STRATEGIC CREDIT FUND
By: Oaktree Fund Advisors, LLC
Its: Investment Advisor
By: /s/ Matthew Stewart
Name: Matthew Stewart
Title: Managing Director
By: /s/ Mary Gallegly
Name: Mary Gallegly
Title: Managing Director
Address for Notices:
Oaktree Fund Administration, LLC 333 S. Grand Avenue, 28th Fl.
Los Angeles, CA 90071 Attn: Oaktree Agency
Email: ***@***
With a copy to:
Oaktree Capital Management, L.P. 333 S. Grand Avenue, 28th Fl.
Los Angeles, CA 90071 Attn: Aman Kumar
Email: ***@***
With a copy to:
Sullivan & Cromwell LLP 125 Broad Street
New York, NY 10004 Attn: Ari B. Blaut
Email: ***@***
[Signature Page to Third Amendment]
OAKTREE GCP FUND DELAWARE HOLDINGS, L.P.
By: Oaktree Global Credit Plus Fund GP, L.P.
Its: General Partner
By: Oaktree Global Credit Plus Fund GP Ltd.
Its: General Partner
By: Oaktree Capital Management, L.P.
Its: Director
By: /s/ Matthew Stewart
Name: Matthew Stewart
Title: Managing Director
By: /s/ Mary Gallegly
Name: Mary Gallegly
Title: Managing Director
Address for Notices:
Oaktree Fund Administration, LLC 333 S. Grand Avenue, 28th Fl.
Los Angeles, CA 90071 Attn: Oaktree Agency
Email: ***@***
With a copy to:
Oaktree Capital Management, L.P. 333 S. Grand Avenue, 28th Fl.
Los Angeles, CA 90071 Attn: Aman Kumar
Email: ***@***
With a copy to:
Sullivan & Cromwell LLP 125 Broad Street
New York, NY 10004 Attn: Ari B. Blaut
Email: ***@***
[Signature Page to Third Amendment]
OAKTREE DIVERSIFIED INCOME FUND INC.
By: Oaktree Fund Advisors, LLC
Its: Investment Advisor
By: /s/ Matthew Stewart
Name: Matthew Stewart
Title: Managing Director
By: /s/ Mary Gallegly
Name: Mary Gallegly
Title: Managing Director
Address for Notices:
Oaktree Fund Administration, LLC 333 S. Grand Avenue, 28th Fl.
Los Angeles, CA 90071 Attn: Oaktree Agency
Email: ***@***
With a copy to:
Oaktree Capital Management, L.P. 333 S. Grand Avenue, 28th Fl.
Los Angeles, CA 90071 Attn: Aman Kumar
Email: ***@***
With a copy to:
Sullivan & Cromwell LLP 125 Broad Street
New York, NY 10004 Attn: Ari B. Blaut
Email: ***@***
[Signature Page to Third Amendment]
OAKTREE AZ STRATEGIC LENDING FUND, L.P.
By: Oaktree AZ Strategic Lending Fund GP, L.P.
Its: General Partner
By: Oaktree Fund GP IIA, LLC
Its: General Partner
By: Oaktree Fund GP II, L.P.
Its: Managing Member
By: /s/ Matthew Stewart
Name: Matthew Stewart
Title: Authorized Signatory
By: /s/ Mary Gallegly
Name: Mary Gallegly
Title: Authorized Signatory
Address for Notices:
Oaktree Fund Administration, LLC 333 S. Grand Avenue, 28th Fl.
Los Angeles, CA 90071 Attn: Oaktree Agency
Email: ***@***
With a copy to:
Oaktree Capital Management, L.P. 333 S. Grand Avenue, 28th Fl.
Los Angeles, CA 90071 Attn: Aman Kumar
Email: ***@***
With a copy to:
Sullivan & Cromwell LLP 125 Broad Street
New York, NY 10004 Attn: Ari B. Blaut
Email: ***@***
[Signature Page to Third Amendment]
OAKTREE LOAN ACQUISITION FUND, L.P.
By: Oaktree Fund GP IIA, LLC
Its: General Partner
By: Oaktree Fund GP II, L.P.
Its: Managing Member
By: /s/ Matthew Stewart
Name: Matthew Stewart
Title: Authorized Signatory
By: /s/ Mary Gallegly
Name: Mary Gallegly
Title: Authorized Signatory
Address for Notices:
Oaktree Fund Administration, LLC 333 S. Grand Avenue, 28th Fl.
Los Angeles, CA 90071 Attn: Oaktree Agency
Email: ***@***
With a copy to:
Oaktree Capital Management, L.P. 333 S. Grand Avenue, 28th Fl.
Los Angeles, CA 90071 Attn: Aman Kumar
Email: ***@***
With a copy to:
Sullivan & Cromwell LLP 125 Broad Street
New York, NY 10004 Attn: Ari B. Blaut
Email: ***@***
[Signature Page to Third Amendment]
OAKTREE LSL FUND HOLDINGS EURRC S.À R.L.
26A, boulevard Royal L-2449 Luxembourg, Grand Duchy of Luxembourg
R.C.S Luxembourg Number: B269245
By: /s/ Martin Eckel
Name: Martin Eckel
Title: Manager
By: /s/ Flora Verrecchia
Name: Flora Verrecchia
Title: Authorized Signatory
Address for Notices:
Oaktree Fund Administration, LLC 333 S. Grand Avenue, 28th Fl.
Los Angeles, CA 90071 Attn: Oaktree Agency
Email: ***@***
With a copy to:
Oaktree Capital Management, L.P. 333 S. Grand Avenue, 28th Fl.
Los Angeles, CA 90071 Attn: Aman Kumar
Email: ***@***
With a copy to:
Sullivan & Cromwell LLP 125 Broad Street
New York, NY 10004 Attn: Ari B. Blaut
Email: ***@***
[Signature Page to Third Amendment]
OAKTREE LSL FUND DELAWARE HOLDINGS EURRC, L.P.
By: Oaktree Life Sciences Lending Fund GP, L.P.
Its: General Partner
By: Oaktree Life Sciences Lending Fund GP Ltd.
Its: General Partner
By: /s/ Matthew Stewart
Name: Matthew Stewart
Title: Managing Director
By: /s/ Mary Gallegly
Name: Mary Gallegly
Title: Managing Director
Address for Notices:
Oaktree Fund Administration, LLC 333 S. Grand Avenue, 28th Fl.
Los Angeles, CA 90071 Attn: Oaktree Agency
Email: ***@***
With a copy to:
Oaktree Capital Management, L.P. 333 S. Grand Avenue, 28th Fl.
Los Angeles, CA 90071 Attn: Aman Kumar
Email: ***@***
With a copy to:
Sullivan & Cromwell LLP 125 Broad Street
New York, NY 10004 Attn: Ari B. Blaut
Email: ***@***
[Signature Page to Third Amendment]
OAKTREE PRE LIFE SCIENCES FUND, L.P.
By: Oaktree Pre Life Sciences Fund GP, L.P.
Its: General Partner
By: Oaktree Fund GP IIA, LLC
Its: General Partner
By: Oaktree Fund GP II, L.P.
Its: Managing Member
By: /s/ Matthew Stewart
Name: Matthew Stewart
Title: Authorized Signatory
By: /s/ Mary Gallegly
Name: Mary Gallegly
Title: Authorized Signatory
Address for Notices:
Oaktree Fund Administration, LLC 333 S. Grand Avenue, 28th Fl.
Los Angeles, CA 90071 Attn: Oaktree Agency
Email: ***@***
With a copy to:
Oaktree Capital Management, L.P. 333 S. Grand Avenue, 28th Fl.
Los Angeles, CA 90071 Attn: Aman Kumar
Email: ***@***
With a copy to:
Sullivan & Cromwell LLP 125 Broad Street
New York, NY 10004 Attn: Ari B. Blaut
Email: ***@***
[Signature Page to Third Amendment]
KKR HEALTH CARE STRATEGIC GROWTH FUND L.P.
By: KKR Associates HCSG L.P.,
Its: General Partner
By: KKR HCSG GP LLC,
Its: General Partner
By: /s/ Ali Satvat
Name: Ali Satvat
Title: Vice President
Address for Notices:
KKR
2800 Sand Hill Road
Suite 200
Menlo Park, California 94025
Attn: Ali Satvat
Email: ***@***
With a copy to:
Paul, Weiss, Rifkind Wharton & Garrison LLP
1285 6th Avenue
New York, NY 10019
Attn: Sung Pak
Email: ***@***
[Signature Page to Third Amendment]
KKR HCS GROWTH FUND ESC L.P.
By: KKR HCSG GP LLC,
Its: General Partner
By: /s/ Ali Satvat
Name: Ali Satvat
Title: Vice President
Address for Notices:
KKR
2800 Sand Hill Road
Suite 200
Menlo Park, California 94025
Attn: Ali Satvat
Email: ***@***
With a copy to:
Paul, Weiss, Rifkind Wharton & Garrison LLP
1285 6th Avenue
New York, NY 10019
Attn: Sung Pak
Email: ***@***
[Signature Page to Third Amendment]
KKR HCS GROWTH FUND SBS L.P.
By: KKR HCSG GP LLC,
Its: General Partner
By: /s/ Ali Satvat
Name: Ali Satvat
Title: Vice President
Address for Notices:
KKR
2800 Sand Hill Road
Suite 200
Menlo Park, California 94025
Attn: Ali Satvat
Email: ***@***
With a copy to:
Paul, Weiss, Rifkind Wharton & Garrison LLP
1285 6th Avenue
New York, NY 10019
Attn: Sung Pak
Email: ***@***
[Signature Page to Third Amendment]
EXHIBIT A
EXHIBIT M
MILESTONES
Milestone | Milestone Deadline | Aggregate Tranche B Availability |
[***] | [***] | [***] |
[***] | [***] | [***] |
[***] | [***] | [***] |
[***] | [***] | [***] |
[***] | [***] | [***] |
[***] | [***] | [***] |