BioPharma Credit PLC New Investment (1876M)
September 13 2019 - 1:00AM
UK Regulatory
TIDMBPCR
RNS Number : 1876M
BioPharma Credit PLC
13 September 2019
BIOPHARMA CREDIT PLC
("BIOPHARMA CREDIT" OR THE "COMPANY")
NEW INVESTMENT
BioPharma Credit PLC (LSE: BPCR), the specialist life sciences
debt investor, is pleased to announce that it has entered into a
definitive senior secured note purchase agreement for the issuance
and sale of senior secured notes in an aggregate original principal
amount of up to US$150 million by OptiNose US, Inc. alongside
BioPharma Credit Investments V (Master) LP ("BioPharma-V"), a
private fund also investing in life sciences debt managed by
Pharmakon Advisors launched in June 2019. OptiNose US, Inc. is a
wholly-owned subsidiary of OptiNose, Inc. (Nasdaq: OPTN), a
commercial-stage specialty pharmaceutical company with a current
market capitalisation of approximately US$280 million ("Optinose").
As described below, the Company's share of the transaction will be
up to US$82.5 million and the Company will initially invest US$44.0
million.
Optinose's leading product, XHANCE(R) (fluticasone propionate),
is a nasal spray approved by the U.S. Food and Drug Administration
(FDA) in September 2017 for the treatment of nasal polyps in
patients 18 years or older. XHANCE(R) utilizes a novel and
proprietary exhalation delivery system to deliver drug high and
deep into the sinuses, targeting areas traditional intranasal spray
are not able to reach.
During the quarter ended 30 June, 2019 Optinose reported
XHANCE(R) revenue of US$6.7 million, a 68% sequential increase from
the previous quarter. As of 30 June 2019, Optinose had US$144.0
million of cash and liquid investments. Proceeds from the issuance
and sale of the first tranche of senior secured notes, along with
available cash on hand, were used to repay and retire Optinose's
existing term loan with Athyrium Opportunities III Acquisition, LP,
which had an outstanding balance of US$75.0 million and a maturity
date of June 2023.
"We are pleased to partner with Optinose", said Pedro Gonzalez
de Cosio, CEO of Pharmakon Advisors, LP. "Led by an excellent
management team, Optinose's Xhance is an important medicine for the
many patients suffering from nasal polyps."
Senior secured notes in an aggregate original principal amount
of up to US$150 million will be issued and sold in up to four
tranches, each maturing in September 2024 and bearing interest at
10.75 percent per annum along with a one-time additional
consideration of 0.75 percent of the aggregate original principal
amount of senior secured notes which the Company and BioPharma-V
are committed to purchase under the facility and approximately
800,000 warrants exercisable into common stock of OptiNose,
Inc.
-- Senior secured notes in an aggregate original principal
amount of US$80 million will be immediately issued, sold and
purchased.
-- Following this, senior secured notes in an aggregate original
principal amount of US$30 million will be issued, sold and
purchased by February 2020, subject to the achievement of a certain
sales milestone.
-- Two additional tranches of senior secure notes, in an
aggregate original principal amount of US$20m each, will be
available for issuance and sale at Optinose's option, subject to
the achievement of certain sales milestones, prior to August 2020
and February 2021.
The loan is secured by substantially all of Optinose's
assets.
Link Company Matters Limited
Company Secretary
13 September 2019
Enquiries:
Buchanan
David Rydell / Mark Court/ Jamie Hooper/ Henry Wilson
+44 (0)20 7466 5000
Biopharmacredit@buchanan.uk.com
Notes to Editors:
BioPharma Credit PLC is London's only listed specialist investor
in debt from the life sciences industry and joined the LSE on 27
March 2017. The Company seeks to provide long-term shareholder
returns, principally in the form of sustainable income
distributions from exposure to the life sciences industry. The
Company seeks this objective primarily through investments in debt
assets secured by royalties or other cash flows derived from the
sales of approved life sciences products.
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
END
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