BioPharma Credit (BPCR), the specialist life sciences debt investor, has announced that its discount control mechanism has been activated. The company will be required to purchase shares in the market as a result of the shares trading in excess of a 5% discount to NAV over a three-month rolling period, using the methodology described in the company’s prospectus.
Shares to be repurchased until discount narrows to 1% or less
BPCR notes that as per the terms of the prospectus, the company will, subject to meeting its target dividend, use 50% of the company’s capital and income proceeds generated after the conclusion of such 3 month rolling period, to repurchase ordinary shares at least until such time as the shares trade at an average discount of 1% or less to the NAV over a 2 week rolling period. BPCR says it intends to meet this commitment and will announce the details of buybacks in due course.
Jeremy Sillem, chairman of BPCR, said, “As a result of the extremely volatile equity market conditions, the discount at which the company’s shares traded narrowly exceeded 5% over a rolling 3 month period using the methodology described in the prospectus.”
BPCR: BioPharma Credit’s discount control mechanism activated