REG - BioPharma Credit PLC - STATEMENT RE REATA PHARMACEUTICALS

Biopharma CreditAnnouncement

31/07/2023 07:00

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RNS Number : 6415H  BioPharma Credit PLC  31 July 2023

BioPharma Credit PLC

31 JULY 2023

 

 

 

 

BIOPHARMA CREDIT PLC

 

(THE "COMPANY")

 

STATEMENT RE REATA PHARMACEUTICALS

 

Pharmakon Advisors, LP, the investment manager of the Company, notes the
announcement released Friday 28 July by Biogen Inc. ("Biogen") regarding the
definitive agreement pursuant to which Biogen will acquire Reata
Pharmaceuticals Inc. ("Reata") for an enterprise value of approximately US$7.3
billion (the "Transaction"). Biogen and Reata currently anticipate that the
Transaction will close in the fourth quarter of 2023.

 

The Company announced on 11 May 2023 an investment in a senior secured loan to
Reata of up to US$137.5 million in up to four tranches. As of today, the
Company had funded the first two tranches representing a US$62.5 million
investment. The loan is expected to be prepaid upon the closing of the
Transaction. Pursuant to the senior secured loan agreement, in connection with
the Transaction and the repayment of outstanding principal, the Company is
expected to receive a make-whole payment for the remainder of the two-year
make-whole period along with a prepayment premium of 3%, in each case with
respect to the principal repaid. For illustrative purposes, if the Transaction
were to close on 30 September 2023, the Company would be expected to receive
approximately US$15.5 million in prepayment and make-whole fees.

 

Enquiries:

BioPharma Credit plc

via Link Company Matters Limited

Company Secretary

+44 (0)1392 477 509

 

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