BioPharma lends up to $150m to OptiNose – BioPharma Credit will lend, alongside BioPharma Credit Investments V, up to $150m via senior secured notes issued by OptiNose US, Inc. BioPharma Credit’s share of the transaction will be up to US$82.5 million and its initial investment US$44.0 million.
(BioPharma Credit Investments V (Master) LP is a private fund also investing in life sciences debt managed by Pharmakon Advisors launched in June 2019.)
OptiNose US, Inc. is a wholly-owned subsidiary of OptiNose, Inc. (Nasdaq: OPTN), a commercial-stage specialty pharmaceutical company with a current market capitalisation of approximately US$280 million.
Optinose’s leading product, XHANCE(R) (fluticasone propionate), is a nasal spray approved by the U.S. Food and Drug Administration (FDA) in September 2017 for the treatment of nasal polyps in patients 18 years or older. XHANCE(R) utilizes a novel and proprietary exhalation delivery system to deliver drug high and deep into the sinuses, targeting areas traditional intranasal spray are not able to reach.
During the quarter ended 30 June, 2019 Optinose reported XHANCE(R) revenue of US$6.7 million, a 68% sequential increase from the previous quarter. As of 30 June 2019, Optinose had US$144.0 million of cash and liquid investments. Proceeds from the issuance and sale of the first tranche of senior secured notes, along with available cash on hand, were used to repay and retire Optinose’s existing term loan with Athyrium Opportunities III Acquisition, LP, which had an outstanding balance of US$75.0 million and a maturity date of June 2023.
The senior secured notes will be issued and sold in up to four tranches, each maturing in September 2024 and bearing interest at 10.75% a year, plus a one-time additional consideration of 0.75% on the whole amount of the loan commitment, plus approximately 800,000 warrants which are exercisable into common stock of OptiNose, Inc.
After the first lot of $80m, the next tranche of US$30 million will be issued, sold and purchased by February 2020, subject to the achievement of a certain sales milestone. Two additional tranches of senior secure notes of US$20m each, will be available at Optinose’s option, subject to the achievement of certain sales milestones, prior to August 2020 and February 2021.
The loan is secured by substantially all of Optinose’s assets.
BPCR : BioPharma lends up to $150m to OptiNose
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