BioPharma Credit PLC ADDITIONAL INVESTMENT IN EPIZYME (5786E)
November 09 2020 - 1:00AM
UK Regulatory
TIDMBPCR
RNS Number : 5786E
BioPharma Credit PLC
09 November 2020
9 NOVEMBER 2020
BioPharma Credit plc
(the "Company")
ADDITIONAL INVESTMENT IN EPIZYME
BioPharma Credit PLC (the "Company"), is pleased to announce
that it, through its fully owned subsidiary, together with
BioPharma Credit Investments V (Master) LP ("BioPharma-V" and
jointly with the Company the "Lenders",) has entered into an
amended and restated loan agreement with Epizyme, Inc ("Epizyme")
dated 3 November 2020. As part of this amendment, the Company will
invest an additional US$75 million in the Epizyme loan.
Under the original terms of the loan agreement, executed in
November 2019, Epizyme borrowed US$70 million in three tranches and
the Company previously invested US$35 million with BioPharma-V
investing the US$35 million balance. The original US$70 million
loan will mature in November 2024 and bears interest at LIBOR plus
7.75 per cent. per annum along with a one-time additional
consideration of 2.00 per cent. of the total loan amount. In
addition, the facility was expandable by up to US$300 million,
subject to mutual agreement between the Lenders and Epizyme after
approval of tazemetostat for the treatment of follicular lymphoma.
On 23 January 2020, TAZVERIK(R) was granted accelerated approval
from the U.S. Food and Drug Administration (FDA) for the treatment
of patients with epithelioid sarcoma and on 18 June 2020 TAZVERIK
received accelerated approval from the FDA for the treatment of
patients with relapsed/refractory follicular lymphoma.
The amendment increases the aggregate principal amount of the
loan to Epizyme to US$220 million through a US$150 million fourth
tranche ("Tranche D"), which the parties expect to be drawn in full
on 18 November 2020. The Company will invest US$75 million of the
US$150 million Tranche D and BioPharma-V will invest the US$75
million balance. Tranche D will have the same fees and coupon as
the earlier tranches, will be secured by the same collateral as the
earlier tranches, and will mature in November 2026 after eight
equal amortization payments beginning in February 2025. As part of
the amendment, the amortization terms of the initial US$70 million
advanced in the first three tranches were changed from eight equal
quarterly payments starting in February 2023 to four equal
quarterly payments starting in February 2024. Following the
expected Tranche D closing, the facility will remain expandable by
up to an additional US$150 million, subject to mutual agreement
between the Lenders and Epizyme.
"We are delighted to expand our partnership with Epizyme", said
Pedro Gonzalez de Cosio, CEO of Pharmakon Advisors, LP. "TAZVERIK
is now approved to meet the well-defined unmet patient needs in two
very different indications (a solid tumor and a hematologic
malignancy), demonstrating its broad therapeutic potential."
Further to the 4 November 2019 announcement of the original loan
agreement, Royalty Pharma continues to hold approximately 9.1% of
the issued share capital of Epizyme and Pablo Legorreta, a
principal of Pharmakon and Royalty Pharma, continues to be a member
of Epizyme's board of directors.
Enquiries
BioPharma Credit plc
via Link Company Matters Limited
Company Secretary
+44 (0)1392 477 500
Buchanan
+44 (0)20 7466 5000 / biopharmacredit@buchanan.uk.com
David Rydell
Mark Court
Jamie Hooper
Henry Wilson
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 to achieve this objective primarily through
investments in debt assets secured by royalties or other cash flows
derived from the sales of approved life sciences products.
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