BioPharma to spend $600m cash pile by year end – in its interim results, covering the first half of 2019, BioPharma Credit reports that $165.7m was invested in total of which:
- $80m went to a senior secured loan commitment to BioDelivery Sciences on 23 May 2019
- The first tranche of $60m was drawn on 28 May 2019. The loan will mature in May 2025 and bears an interest at LIBOR plus 7.5 per cent., along with 2 per cent additional consideration. The second tranche of $20m is available to be drawn by May 2020 at BioDelivery Science’s option.
- a $25m equity investment in BioDelivery Sciences was acquired at a cost of $5.00 per share through participation in a public offering on 11 April 2019.
- $38.6m further investment was funded to the commitment made in 2017 to acquire an interest in a stream of payments from Bristol Myers Squibb.
- $21.3m was invested in convertible notes of a publicly traded life sciences company based in the US.
That still left $612.9m in cash and cash equivalents at 30 June 2019. BioPharma’s cash pile is so big largely because GlaxoSmithKline completed its acquisition of TESARO Inc on 22 January triggering the early repayment of the company’s $322.0m loan. As well as getting its cash back, BioPharma Credit also received $45.8m in prepayment and other fees (making it a 22.5% annualised rate of return on its investment).
During the half-year period the company paid two quarterly dividends totalling $0.0368 per Ordinary Share against the targeted total distribution of 7 cents for the full year
Today’s statement say that the company continues to anticipate deploying the majority of these resources in new investments by the end of 2019. We are going along to the results presentation and so will report back later.
BPCR : BioPharma to spend $600m cash pile by year end
Click here to subscribe for free equity research on investment trusts, funds and listed companies.