BioPharma Credit (BPCR) announced that it, through its fully owned subsidiary, together with BioPharma Credit Investments V has entered into an amended and restated loan agreement with Epizyme, which will see BPCR invest an additional US$75m in the Epizyme loan. This amended loan agreement is dated 3 November.
Under the original terms of the loan agreement, dated November 2019, it is noted this morning that Epizyme borrowed US$70m in three tranches and BPCR previously invested US$35m with BioPharma-V investing the US$35m balance. The original US$70m loan will mature in November 2024 and bears interest at LIBOR plus 7.75% per annum along with a one-time additional consideration of 2% of the total loan amount.
Epizyme’s ‘Tazverik’ is a treatment for follicular lymphoma
BPCR notes that the facility was expandable by up to US$300m, subject to mutual agreement between the lenders and Epizyme after approval of ‘tazemetostat’ for the treatment of follicular lymphoma. On 23 January 2020, ‘Tazverik,’ the brand name for ‘tazemetostat,’ was granted accelerated approval from the US Food and Drug Administration (FDA) for the treatment of patients with epithelioid sarcoma and on 18 June 2020, ‘Tazverik’ received accelerated approval from the FDA for the treatment of patients with relapsed/refractory follicular lymphoma.
This morning’s announcement goes on to say that the amendment increases the aggregate principal amount of the loan to Epizyme to US$220m through a US$150m fourth tranche (Tranche D), which the parties expect to be drawn in full on 18 November 2020. BPCR will invest US$75m of the US$150m and BioPharma-V will invest the US$75m balance. Tranche D will have the same fees and coupon as the earlier tranches and will be secured by the same collateral. It will mature in November 2026 after eight equal amortization payments beginning in February 2025.
About BPCR
BPCR is a specialist investor in debt from the life sciences industry and joined the LSE on 27 March 2017. The company seeks to provide long-term shareholder returns, principally in the form of sustainable income distributions from exposure to the life sciences industry. The company seeks to achieve this objective primarily through investments in debt assets secured by royalties or other cash flows derived from the sales of approved life sciences products.
BPCR: BioPharma Credit to invest an additional $75m in follicular lymphoma drug maker