REG - BioPharma Credit PLC - NEW INVESTMENT OF US$35 MILLION

Biopharma CreditAnnouncement

31/10/2024 07:00

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RNS Number : 3875K  BioPharma Credit PLC  31 October 2024

31 October 2024

 

BIOPHARMA CREDIT PLC

(THE "COMPANY")

NEW INVESTMENT OF US$35 MILLION

 

BioPharma Credit PLC (LSE: BPCR), the specialist life sciences debt
investment trust, is pleased to announce a new investment in the form of an
assignment of a US$35 million tranche in a US$200 million senior secured loan
to Alphatec Holdings, Inc. ("ATEC"). BioPharma Credit Investments V (Master)
LP ("BioPharma-V") was assigned an additional US$35 million tranche. The
assignor, Braidwell Transaction Holdings LLC - Series I, will retain the
remaining US$130 million.

Based in the US, ATEC is a publicly traded medical device company with a
current market capitalization of ~US$745 million (Ticker: ATEC - NASDAQ).
ATEC's Organic Innovation Machine(TM) is focused on developing new approaches
that integrate seamlessly with its expanding Alpha InformatiX Platform to
better inform surgery and more safely and reproducibly achieve the goals of
spine surgery. ATEC's vision is to be the Standard Bearer in Spine. ATEC
reported net sales of US$435 million for the first nine months of 2024.

The loan matures in January 2028 and bears interest at 3-month SOFR plus 5.75
per cent. per annum subject to a 3.00 per cent. SOFR floor. The Company also
received a 1% fee on its US$35 million investment at the signing of the
assignment agreement. The loan includes (i) a repayment premium of 3.00 per
cent. of the principal amount of any such repayment during the first 12 months
after the signing date, 2.00 per cent. of the principal amount of any such
repayment during months 13 through 24 after the signing date, and 1.00 per
cent. of the principal amount of any such repayment thereafter but prior to
the maturity date, as well as (ii) an exit fee of 3.25 per cent. of the
principal amount of any repayment or prepayment on such date of repayment or
prepayment.

Pedro Gonzalez de Cosio, CEO of Pharmakon Advisors, LP, the Company's
investment adviser said:

"ATEC's mission to improve spine care is fueling exceptional growth. We are
excited to partner with the team in support of that important mission as the
company continues to expand profitability and inflects to positive cash flow."

Enquiries

Burson Buchanan

Mark Court / Jamie Hooper / Henry Wilson / Samuel Adams

+44 (0) 20 7466 5000

biopharmacredit@buchanan.uk.com (mailto:biopharmacredit@buchanan.uk.com)

Notes to Editors

BioPharma Credit PLC is London's only specialist debt investor to the life
sciences industry and joined the LSE in 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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