REG - BioPharma Credit PLC - UPDATE ON INVESTMENT

Biopharma CreditAnnouncement

21/07/2023 11:30

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RNS Number : 8283G  BioPharma Credit PLC  21 July 2023

21 July 2023

 

BIOPHARMA CREDIT PLC

 

UPDATE ON INVESTMENT

 

BioPharma Credit PLC (LSE: BPCR) notes the filing of a Form 6-K made on 20
July 2023 by LumiraDx Limited ("LumiraDx") which discloses an amendment to the
loan agreement entered into with BioPharma Credit PLC, BPCR Limited
Partnership, and BioPharma Credit Investments V (Master) LP, which is copied
below in part for convenience and can be found in its entirety at: LumiraDx
Form 6-K Report
(https://www.sec.gov/Archives/edgar/data/1685428/000095017023033736/form_6-k_pharma_amend_9.htm)
:

 

"EXPLANATORY NOTE

 

On July 20, 2023, LumiraDx Investment Limited, one of the subsidiaries of
LumiraDx Limited (the "Company"), entered into a ninth amendment and waiver to
that certain Loan Agreement, dated March 23, 2021 (as amended from time to
time, the "Loan Agreement"), with BioPharma Credit Investments V (Master) LP
and BPCR Limited Partnership, as lenders, and BioPharma Credit PLC, as
collateral agent (the "Ninth Amendment").

 

Pursuant to the Ninth Amendment, among other things, (i) the minimum liquidity
covenant in the Loan Agreement is waived until September 1, 2023; provided
that the consolidated liquidity of the Company and its subsidiaries during
this waiver period (and tested on a weekly basis) must be at least $5 million,
(ii) the minimum net sales covenant for the trailing twelve-month period ended
June 30, 2023 will be tested on September 1, 2023, and (iii) the lenders have
agreed to provide, subject to the terms of the Loan Agreement as amended by
the Ninth Amendment, additional term loans to the Company during the waiver
period, in an aggregate amount of up to $31 million (the "New Term Loans").
The New Term Loans will be subject to an interest rate of SOFR plus 8.0% per
annum, payable in quarterly installments, with the first interest payment due
on September 30, 2023. All amounts outstanding under the Loan Agreement,
including the New Term Loans, will mature on March 29, 2024.

 

In exchange for the amendments described above, the Company has agreed to,
among other things, permit the lenders to designate two individuals to serve
on the Company's Board of Directors as observers, with the authority to attend
and receive materials relating to (but not vote at) meetings of the Company's
Board of Directors. Each such appointment shall be terminated immediately upon
the payment in full of all of the Company's obligations under the Loan
Agreement. The Company has also agreed to engage advisors to conduct a
strategic review of the business of the Company and its subsidiaries and
advise on available options.

 

The foregoing description of the Ninth Amendment does not purport to be
complete and is qualified in its entirety by reference to the Ninth Amendment
which is attached to this Form 6-K as Exhibit 4.1, and incorporated herein by
reference.

 

This report on Form 6-K, including Exhibit 4.1 hereto, shall be deemed to be
incorporated by reference into the Company's registration statements on Form
S-8 (File No. 333-259874, File No. 333-264611 and File No. 333-271538), and
the registration statements on Form F 3 (File No. 333-264609 and File No.
333-271624), and to be a part thereof from the date on which this report is
filed, to the extent not superseded by documents or reports subsequently
furnished."

 

Pharmakon Advisors, LP will continue to provide updates in due course.

 

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. BioPharma Credit PLC
seeks to provide long-term shareholder returns, principally in the form of
sustainable income distributions from exposure to the life sciences industry.
BioPharma Credit PLC 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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