BioPharma Credit to benefit from portfolio holding Sarepta Therapeutics loan repayment – BioPharma Credit (BPCR) has published its half-year report for the six months to 30 June 2022. During the period under review, the trust’s combined cash balance decreased by $112m. On 30 June 2022, its ordinary shares closed at $0.9400, below the closing price on 31 December 2021 of $0.9680. The NAV per ordinary share increased over the same time from $0.9926 to $1.0072. BPCR issued two dividend payments over the period as planned, together totalling $0.035 per share and remains confident of delivering its $0.07 target annual distribution.
In March 2022, the company through its subsidiary, BPCR Limited Partnerships, drew down $138m on its existing credit facility with a remaining $162m available under the accordion feature
Meanwhile Pharmakon Advisors, BPCR’s manager, notes the announcement released on 12 September 2022 by Sarepta Therapeutics regarding the early termination and repayment of certain of its existing senior secured debt with proceeds from an issuance of $1bn in convertible bonds.
BPCR currently has a $350m investment in a senior secured loan to Sarepta which would be prepaid upon the closing of the transaction. The senior secured loan was committed through two different tranches with each tranche subject to different prepayment economics. Assuming the prepayment occurs on 16 September 2022, BPCR would be expected to receive approximately $16m in paydown, prepayment and make-whole fees.
BPCR : BioPharma Credit to benefit from portfolio holding Sarepta Therapeutics loan repayment