REG - Oxford Biomedica PLC - Amendment of Short-Term Loan Facility

Oxford BioMedicaAnnouncement

07/10/2022 07:00

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RNS Number : 1481C  Oxford Biomedica PLC  07 October 2022

 

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Amendment of Short-Term Loan Facility into new Term Loan Facility With Oaktree

-       Partial repayment and amendment of $85 million Oaktree loan
facility completed

-       Extended relationship with Oaktree via a new four-year term loan
facility of $50 million with a variable interest rate capped at 10.25% per
annum

 

Oxford, UK - 7 October 2022: Oxford Biomedica plc (LSE:OXB) ("Oxford
Biomedica" or "the Company"), a leading gene and cell therapy group, today
announces that it has refinanced the US$85 million secured 12 month loan
facility from funds managed by Oaktree Capital Management, L.P. ("Oaktree")
(the "Short Term Loan Facility") previously announced in March 2022.

Under the terms of such refinancing, the Company has partially repaid the
outstanding amounts under the Short-Term Loan Facility and amended the
facility into a new senior secured four year term loan facility provided by
Oaktree in a principal amount of US$50 million (the "Term Loan").

The amended Term Loan contains similar terms to the prior 12 month loan
facility and includes the usual and customary provisions relating to mandatory
prepayments, covenants and representations and warranties. The Term Loan will
mature four years after the date of completion and will not amortise, with the
full aggregate principal and outstanding amount being repayable on the final
maturity date.

The Term Loan will be secured by substantially all of the present and
subsequently acquired assets of the Company and its wholly owned subsidiaries
and be guaranteed by the Company's wholly-owned subsidiaries, with customary
exceptions. The Term Loan carries a variable interest rate, which is capped at
10.25% per annum and payable quarterly in cash, with up to 50% of interest for
the first twelve months payable in kind as additional loan principal, at the
option of the Company. The interest rate is subject to downward adjustment
following the satisfaction of certain commercial conditions.

The Company also has secured the option, subject to customary conditions and
available for a three-year period, to drawdown a further US$25 million from
Oaktree to fund certain permitted acquisitions.

Stuart Paynter, Chief Financial Officer of Oxford Biomedica, commented: "We
are pleased to complete the refinancing of this loan, which will give us
continued operational flexibility as we progress on delivering our strategic
objectives. We continue to have a strong net cash position and have
significantly extended the term of this facility which was originally taken
out at the time we established Oxford Biomedica Solutions."

Aman Kumar, Co-Portfolio Manager of Life Sciences Lending at Oaktree,
commented: "We are pleased to have the opportunity to extend our long-term
relationship with Oxford Biomedica via this non-dilutive term financing. Since
our initial investment in 2017, we have been impressed by the company's
progress to cement itself as a leader in viral vector manufacturing."

 

-Ends-

 

Enquiries:

 

 

Oxford Biomedica plc:

 

Stuart Paynter, Chief Financial Officer - T: +44 (0)1865 783 000

Taylor Boyd, VP, Head of IR - T: +1 919 539 1234

Sophia Bolhassan, VP, Corporate Affairs and IR - T: +44 (0) 7394 562 425

 

Consilium Strategic Communications:

T: +44 (0)20 3709 5700 / E: oxfordbiomedica@consilium-comms.com

 

Mary-Jane Elliott / Matthew Cole            / Angela Gray

 

 

About Oxford Biomedica

 

Oxford Biomedica (LSE:OXB) is an innovative leading viral vector specialist
focused on delivering life changing therapies to patients.

 

Oxford Biomedica plc and its subsidiaries (the Group) work across key viral
vector delivery systems including those based on lentivirus, adeno-associated
virus (AAV) and adenovirus, providing innovative solutions to cell and gene
therapy biotechnology and biopharma companies for their process development,
analytical development and manufacturing needs. Oxford Biomedica has built a
sector leading lentiviral vector delivery system, LentiVector® platform, and
is working on programmes from pre-clinical to commercial stage across a range
of therapeutic areas with global partners.

 

Oxford Biomedica is based across several locations and headquartered in
Oxfordshire, UK. In 2022, the Group established Oxford Biomedica Solutions, a
US based subsidiary AAV manufacturing and innovation business, based near
Boston, US.

 

Further information is available at www.oxb.com (http://www.oxb.com) .

 

About Oaktree

 

Oaktree is a leader among global investment managers specializing in
alternative investments, with $159 billion in assets under management as of
June 30, 2022. The firm emphasizes an opportunistic, value-oriented and
risk-controlled approach to investments in credit, private equity, real assets
and listed equities. The firm has over 1,000 employees and offices in 20
cities worldwide. For additional information, please visit Oaktree's website
at http://www.oaktreecapital.com.

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