REG - BioPharma Credit PLC - NEW INVESTMENT OF UP TO US$400 MILLION

Biopharma CreditAnnouncement

02/05/2024 12:30

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RNS Number : 0395N  BioPharma Credit PLC  02 May 2024

2 May 2024

 

BIOPHARMA CREDIT PLC

(THE "COMPANY")

NEW INVESTMENT OF UP TO US$400 MILLION

 

BioPharma Credit PLC (LSE: BPCR), the specialist life sciences debt
investment trust, 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 a definitive senior secured loan agreement with Novocure Luxembourg
S.a.r.l. (the "Borrower"), a wholly-owned subsidiary of Novocure Limited
("Novocure") (the "Loan Agreement"). The Company will invest up to US$200
million and BioPharma-V will invest up to an additional US$200 million in
parallel, with the Company acting as collateral agent.

Based in Switzerland, Novocure is a publicly traded global oncology company
with a current market capitalization of ~US$1.38 billion (Ticker: NVCR -
NASDAQ). Novocure has a proprietary platform technology called Tumor Treating
Fields ("TTFields"), which are electric fields that exert physical forces to
kill cancer cells via a variety of mechanisms. Optune Gio is approved for the
treatment of adult patients with newly diagnosed glioblastoma in the U.S, the
European Union, the United Kingdom, Japan and certain other countries. Optune
Lua is approved by for the treatment of malignant pleural mesothelioma and
pleural mesothelioma in the U.S., the European Union and certain other
countries. Novocure reported net sales of US$509 million for the twelve months
ended December 2023.

Under the terms of the transaction, the Company will invest up to US$200
million across four tranches:

·      Tranche A of US$50 million was drawn on 1 May 2024;

·      Tranche B of US$50 million is required to be drawn by 30 June
2025, subject to customary conditions precedent set forth in the Loan
Agreement;

·      Tranche C of up to US$50 million will be available upon
achievement of certain milestones and revenue thresholds until 31 December
2025; and

·      Tranche D of up to US$$50 million will be available upon
achievement of certain milestones and revenue thresholds until 31 March 2026.

The loan will mature in May 2029 and will bear interest at 3-month SOFR plus
6.25 per cent. per annum subject to a 3.25 per cent. SOFR floor, along with an
additional consideration of 2.50 per cent. The additional consideration with
respect to Tranche A and Tranche B was paid at the funding of Tranche A and
will be due and payable with respect to Tranche C and Tranche D at the funding
of those tranches.

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

"We are excited to once again partner with Novocure as it continues to advance
in its mission. This transaction marks the third investment in Novocure made
by entities managed by Pharmakon Advisors. BioPharma III invested US$100m in
2015 which was repaid in 2018, in part with proceeds from a US$150 million
loan made by the Company in 2018 and repaid in 2020."

Enquiries

Buchanan

David Rydell / Mark Court / Jamie Hooper / Henry Wilson

+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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