BioPharma Credit PLC
15 March 2024
BIOPHARMA CREDIT PLC
(THE "COMPANY")
UPDATE ON INVESTMENT
The Company notes the filing of a Form 10-K and Form 8-K made on 14 March 2024 by UroGen Pharma Ltd. ("URGN"), which discloses the amendment and restatement of its loan agreement entered into with the Company, BioPharma Credit Investments V (Master) LP ("BioPharma-V"), and BPCR Limited Partnership (the "A&R Loan Agreement").
The A&R Loan Agreement includes an additional third and fourth tranche of senior secured loans. Under the A&R Loan Agreement the third and fourth tranches were allocated in full to BioPharma-V.
The sole allocation of the third and fourth tranches to BioPharma-V under the A&R Loan Agreement took into consideration the Company's current Discount Control Mechanism (the "DCM"), as updated by the Company on 7 November 2022. Under the DCM, if in any 6-month rolling period the Company's shares on average traded at a discount in excess of 10 per cent. to the NAV per share, th e Company is required to apply 100 per cent. of the principal being returned to repurchase shares until such time that the discount to NAV over a two-week period is less than 5 per cent.
Background and Further Detail on the Additional Tranches
The Company announced on 8 March 2022 a US$100 million senior secured loan to URGN, with each of the Company and BioPharma-V investing up to US$50 million. The Company had previously funded to URGN US$37.5 million (of a US$75 million first tranche) at closing and US$12.5 million (of a US$25 million second tranche) on 16 December 2022.
The third tranche of US$25 million is mandatory and is required to be drawn by URGN by 30 September 2024, subject to satisfaction of customary conditions. The fourth tranche of US$75 million may be drawn at URGN's option no later than 29 August 2025, subject to (i) having successfully drawn the immediately preceding US$25 million tranche, (ii) receiving US FDA approval of an NDA for UGN-102 no later than 30 June 2025, and (iii) satisfaction of customary conditions. In addition, the interest rate was reduced from 3-month SOFR plus 8.25 per cent. per annum to 3-month SOFR plus 7.25 per cent. per annum, and the SOFR floor was increased from 1.25 per cent. to 2.5 per cent. A one-time additional consideration of 1.75 per cent. of the third and fourth tranche will be payable upon funding of each respective tranche.
Enquiries:
BioPharma Credit plc
via Link Company Matters Limited
Company Secretary
+44 (0)1392 477 509
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