BioPharma Credit and BioPharma Credit Investments V (Master) LP has entered into a definitive senior secured loan agreement with Reata Pharmaceuticals, Inc. The company will invest up to $137.5m and BioPharma-V will invest up to an additional $137.5m in parallel.
Based in the US, Reata is a publicly traded (NASDAQ) biopharmaceutical company with a current market capitalisation of about $3bn. On 28 February 2023, Reata received approval in the US for SKYCLARYS (omaveloxolone), the first approved medication indicated for the treatment of Friedreich’s ataxia, a rare genetic disease affecting the nervous system in adults and adolescents aged 16 years and older. Reata anticipates launching SKYCLARYS in the US later this year.
BioPharma Credit’s $137.5m will be invested across four tranches:
- Tranche A of $37.5m will be drawn on 12 May 2023;
- Tranche B of $25.0m will be drawn after achieving certain performance-based milestones;
- Tranche C of $37.5m will be drawn after achieving certain performance-based milestones;
- Tranche D of $37.5m will be available after achieving certain sales-based milestones.
The loan will mature in May 2028 and will bear interest at 3-month SOFR plus 7.5% per annum subject to a 2.5% floor, along with an additional consideration of 2.0%. The additional consideration with respect to Tranche A will be paid at funding and will be due and payable with respect to the remaining tranches at the funding of those tranches.
BPCR : BioPharma Credit funds Reata Pharmaceuticals