BioPharma Credit has, together with BioPharma Credit Investments V (Master) LP, entered into a senior secured loan agreement with Insmed Incorporated. The company invested US$140m and BioPharma-V invested an additional US$210m. BioPharma Credit only put up 40% because it needed to hold cash to fund its discount control mechanism.
Based in the US, Insmed is a publicly traded commercial stage biopharmaceutical company with a current market capitalisation of about US$2.5bn. Insmed reported trailing twelve-months net sales of US$221m during the period ending 30 June 2022. ARIKAYCE® (amikacin liposome inhalation suspension), Insmed’s first commercial product, is a first-in-disease therapy approved in the United States, Europe, and Japan to treat a chronic, debilitating lung disease. Insmed is also progressing a robust pipeline of investigational therapies targeting areas of serious unmet need, including neutrophil-mediated inflammatory diseases and rare pulmonary disorders. Concurrently with this transaction, Insmed announced raising US$150m through a synthetic royalty sale and US$275m through a follow-on equity offering and indicated that these financings will increase its cash, cash equivalents and marketable securities to approximately $1.3bn.
The loan will mature in October 2027 and will bear interest at a rate based upon the secured overnight financing rate (SOFR), subject to a SOFR floor of 2.5%., and a margin of 7.75% per annum. A one-time additional consideration of 2.0% of the total loan amount is also payable upon funding of the loan.
BPCR : BioPharma makes $140m loan to Insmed