BioPharma Credit extends loan to Amicus – BioPharma Credit (BCPR) has entered into a $150m, five-year loan agreement with Amicus Therapeutics, a US-based biotech focused on rare disease. The senior secured loan will have a 2.0% additional consideration and bears interest at Libor plus 7.5% subject to a floor of 1% and certain caps. The loan is interest only for the first four years, and amortises over the remaining term. It can be prepaid at Amicus ‘discretion, at any time, subject to prepayment fees. The loan will be made from the assets attributable to the C Shares of BioPharma Credit only, which will now become fully invested and therefore eligible for conversion into ordinary shares.
The funds will be used to support the commercial launch of Galafold for Fabry disease and other corporate purposes. Amicus has separately announced a definitive agreement in which it will obtain acquire worldwide rights to ten gene therapy programmes through the acquisition of Celenex, a private company. The programmes were developed at the Nationwide Children’s Hospital and Ohio State University. The lead programs are all potential first-to-market curative therapies for rare, devastating diseases, including Batten disease, also known as Neuronal Ceroid Lipofuscinosis (NCL). Amicus held cash and liquid investments of US$553m as of 30 June and has guided to 2018 Galafold revenue of US$80-90m this year.
BioPharma Credit has a diversified portfolio of loans and other instruments backed by royalties or other cash flows derived from sales of approved life sciences products. BioPharma Credit’s primary objective is to generate predictable income for shareholders over the long term. It targets an annual dividend yield of 7.0% (calculated by reference to the Issue Price), and a net total return on NAV of 8.0-9.0%per annum in the medium term.
BPCR : BioPharma Credit announces new loan