REG - BioPharma Credit PLC - UPDATE ON INVESTMENT

Biopharma CreditAnnouncement

26/09/2023 11:30

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RNS Number : 7040N  BioPharma Credit PLC  26 September 2023

26 September 2023

 

BIOPHARMA CREDIT PLC

 

UPDATE ON INVESTMENT

 

BioPharma Credit PLC (LSE: BPCR) notes the filing of a Form 6-K made on 25
September 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/1685428/000095017023049781/form_6-k_pharma_amend_12.htm)
:

 

"EXPLANATORY NOTE

 

On September 25, 2023, LumiraDx Investment Limited, one of the subsidiaries of
LumiraDx Limited (the "Company"), entered into a twelfth 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 "Twelfth Amendment").

 

Pursuant to the Twelfth Amendment, among other things, (i) the minimum
liquidity covenant in the Loan Agreement is waived until October 11, 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 is waived, (iii) the minimum net sales covenant for
the trailing twelve-month period ended September 30, 2023 will be tested on
October 11, 2023, (iv) subject to certain conditions, the interest on the
principal amount outstanding under the Tranche A, Tranche B and Tranche C term
loans for the interest period ending September 30, 2023, shall be PIK Interest
(as defined in the Loan Agreement) instead of being paid in cash, and (v) the
lenders have agreed to provide, subject to the terms of the Loan Agreement as
amended by the Twelfth Amendment, additional term loans to the Company, in an
aggregate amount of up to $15 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. All amounts outstanding under the Loan Agreement,
including the New Term Loans, will mature on March 29, 2024.

 

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

 

The Company expects that the $3.0 million Tranche D Loan Amount (as defined in
the Loan Agreement) will be funded on September 27, 2023.

 

Effective September 25, 2023, Gerald L. Chan has resigned from the Board of
Directors of the Company. Mr. Chan's decision to resign did not arise or
result from any disagreement with the Company on any matter relating to the
Company's operations, policies or practices.

 

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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