9th Nov 2020 15:33
BioPharma Credit PLC - Exeter-based life sciences debt investment trust - Will invest a further USD75 million in epigenetic therapies developer Epizyme Inc, having entered an amended and restated loan agreement with the company. Agreement signed together with BioPharma Credit Investments V (Master) LP. Under the original terms of the loan agreement, executed in November 2019, Epizyme has borrowed USD70 million in three tranches with BioPharma investing USD35 million and BioPharma Credit Investments V (Master) LP the other USD35 million. This original USD70 million loan, expandable by up to USD300 million, matures November 2024 and bears interest at LIBOR plus 7.75% per annum plus a one-time additional consideration of 2.00% of the total loan amount.
Amendment increases aggregate principal amount of the Epizyme loan to USD220 million, with the additional USD150 million fourth tranche to be drawn in full November 18. Increase follows Epizyme's Tazverik having been granted accelerated approval from the US Food & Drug Administration for the treatment of patients with epithelioid sarcoma in January and in June 2020 for the treatment of patients with relapsed or refractory follicular lymphoma.
BioPharma investing USD75 million and BioPharma Credit Investments V the other USD75 million. The fourth tranche has the same fees and coupon as the first three and matures November 2026. Amortization terms for first three tranches changes from eight equal quarterly payments starting in February 2023 to four equal quarterly payments starting in February 2024. Facility will remain expandable by up to a further USD150 million subject to mutual agreement.
Current stock price: USD1.00
Year-to-date change: down 2.3%
By Anna Farley; [email protected]
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