26th May 2020 07:00
26 May 2020
BioPharma Credit plc
(the "Company")
NEW CREDIT FACILITY
BioPharma Credit PLC (LSE: BPCR), the specialist life sciences debt investor, is pleased to announce that it has entered into a US$200 million credit facility (the "Credit Facility") with JPMorgan Chase Bank.
The Credit Facility comprises a three-year US$200 million Revolving Credit Facility ("RCF"). The Company will pay a commitment fee on undrawn amounts of 200 basis points and a LIBOR margin of 400 basis points on drawn amounts. All borrowings under the Credit Facility are subject to compliance with certain covenants and the Company has provided charges over its subsidiaries' assets, including a charge over its subsidiaries' cash account and a floating charge over all of its subsidiaries' assets.
As disclosed in the Company's latest Investor Update, as at 31 March 2020 the Company had a net cash position of US$64.3 million, or 5 per cent. of the Company's net asset value. Should the Revolving Credit Facility be fully drawn, aggregate borrowings would represent approximately 13 per cent. of the Company's net asset value.
According to its Articles of Association, the Company may incur indebtedness of up to a maximum of 50 per cent. of its net asset value, calculated at the time of drawdown, for investment and for working capital purposes. Pharmakon Advisors, LP, the Company's Investment Manager, has agreed not to incur aggregate borrowings greater than 25 per cent. of the Company's net asset value, calculated at the time of drawdown, without prior Board approval. This facility provides for aggregate borrowings of less than 15 per cent.
Pedro Gonzalez de Cosio, CEO of Pharmakon Advisors, LP, said "We are proud to partner with JPMorgan in the Company's inaugural credit facility. This new capital, together with expected cash flows from the portfolio, will provide greater flexibility in relation to new lending opportunities and provide complete coverage for downstream funding obligations."
Enquiries
BioPharma Credit plc
via Link Company Matters Limited
Company Secretary
+44 (0)1392 477 509
J.P. Morgan Cazenove
+44 (0)20 7742 4000
William Simmonds
Oliver Kenyon
Buchanan
+44 (0)20 7466 5000 / [email protected]
David Rydell
Mark Court
Jamie Hooper
Henry Wilson
Notes to Editors
BioPharma Credit PLC is London's only listed specialist investor in debt from the life sciences industry and joined the LSE on 27 March 2017. The Company seeks to provide long-term shareholder returns, principally in the form of sustainable income distributions from exposure to the life sciences industry. The Company seeks to achieve this objective primarily through investments in debt assets secured by royalties or other cash flows derived from the sales of approved life sciences products.
LEI: 213800AV55PYXAS7SY24
Related Shares:
Biopharma Cred.