BioPharma Credit 2021 dividend uncovered by earnings – Over the course of 2021, BioPharma Credit generated an NAV return of 6.2% and a return to shareholders of 4.5% (as the discount widened slightly from 0.8% to 2.5%). Net income per share was 6.18 cents, meaning that the 7.29 cent per share dividend was not covered by earnings. This was the main driver in a fall in the NAV from $1.0037 to $0.9926.
Portfolio activity
The company and its subsidiaries invested $238m in new commitments during the period including:
- $150m with LumiraDx through a senior secured loan announced on 24th March 2021
- $50m additional expansion of the existing senior secured loan agreement with Global Blood Therapeutics announced on 15th December 2021
- $38m with Evolus through a senior secured loan announced on 15th December 2021
The company received a repayment from Sebela totalling $194.2m on 30th June 2021 realising a gross IRR on that investment of 11.2%
Post period end the company invested significant further capital in three investments:
- $325m senior secured loan with Collegium announced on 14th February 2022, as part of this transaction the existing loan commitments with Collegium and BDSI were repaid ($93m and $60m respectively)
- Up to $150m senior secured loan with Coherus ($50m deployed immediately, $50m by 1 April 2022 and $50m by 17 March 2023) announced on 10th January 2022
- Up to $50m senior secured loan with UroGen ($37.5m deployed on 16th March 2022 and up to an additional $12.5m by 31 December 2022) announced on 8th March 2022
60% of the portfolio is exposed to floating rate loans. These should benefit as central bank interest rates rise.
BPCR / BPCP : BioPharma Credit 2021 dividend uncovered