To generate long-term shareholder returns, predominantly in the form of sustainable income distributions from exposure to the life sciences industry.
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Https://uk.investing.com/news/stock-market-news/jefferies-cuts-biopharma-credit-to-hold-on-cash-drag-risk-93CH-3327421
"On Wednesday, investment firm Jefferies downgraded BioPharma Credit PLC (BPCR:LN), shifting its stance from Buy to Hold. The adjustment follows observations of significant loan repayment and prepayment actions within the first half of the year, potentially resulting in a substantial cash balance for the company.
The firm's analyst noted that should BioPharma Credit not secure new investment opportunities, the company could end up with a cash balance that approximates 50% of its net asset value (NAV). This scenario is anticipated due to the high level of loan repayment and prepayment activity noted over the period.
Moreover, with several loans approaching the end of their make-whole periods, there is an increased possibility of additional cash drag. This situation is a key factor influencing the decision to downgrade the stock. The make-whole period is a timeframe during which a borrower must pay a penalty if they repay a loan before its set maturity date.
The potential for a larger cash balance and the risk of further cash drag due to the expiry of make-whole periods have prompted Jefferies to take a more cautious view of BioPharma Credit's stock. The firm's new rating reflects concerns over the impact of these factors on the company's financial performance.
Investors are now watching to see how BioPharma Credit will manage its cash position and whether the company will be able to mitigate the risks associated with the impending expiry of make-whole periods. The outcome of these developments will likely influence the future performance of the company's stock."
PS although not (probably) getting all that's owed it will result in a significant increase in NAV.
The loan was downgrade much further than the loss.
BioPharma Credit provides update on LumiraDx loan - QuotedData
Information on actual amount being repaid.
Not quite all
7% gain today can't complain.
Still paying special dividends.
Expect a move towards a zero discount with the first reduction in interest rates....no time soon!
Cheers SD,
It does look like BPCR will get the $173M loan funds back in 2024 and hopefully some make whole payment.
Got to think this will be reflected in the market this week.
ATB for 2024
"RE: BioPharma Credit10 Aug 2023 09:20
At 86 cents this is yielding 8% and as you say decent record.
what others have higher dividends?"
Always worth noting with BPCR other than covid they always pay special dividends.
Pedrobull
""LumiraDX has outstanding debts of $350m and an equity valuation of just $26m. Having faced liquidity issues for several months, the company had to amend its $173m loan with BPCR for the 15th time yesterday."
Looks to me that BPCR are not getting paid more than a few cents per dollar on this capital"
Looks like 100 cents on the $ to me. Possibly more if it's classed as paying back the loan early as in a make whole payment
"LumiraDx Announces Agreement to Sell its Cutting Edge Point of Care Technology Platform to Roche
December 29, 2023
It is anticipated that all of the sale proceeds of the transaction will be used to repay certain amounts outstanding under the Company’s senior secured loan agreement, and that no sale proceeds will be distributed to the Company or its shareholders. The appointment of the administrators and sale to Roche represent the culmination of LumiraDx’s previously announced strategic review process led by Goldman Sachs & Co. LLC."
I Would guess a reasonable uplift in share price Tuesday. Say 5%?
This is not really a company to expect any share price move until a fall in interest rates.
Obviously that means less income for BioPharma but also less risk of defaults....at least that's the way markets see it.
I'm not seeing that.
LMDX closed on Friday down under 10cents?
Biopharma Credit BPCR
They must be running Lumiradx:
https://www.sec.gov/Archives/edgar/data/1685428/000095017023065261/form_6-k_amend_16.htm
Looks like they have a buyer lined up, with full loan repayment.
Looks like BPCR will get $14.5 million unexpected income in 2024.
From the RNS
Pharmakon Advisors, LP, the investment manager of the Company, notes the announcement released Thursday 30 November 2023 by AbbVie Inc. ("AbbVie") regarding the definitive agreement pursuant to which AbbVie will acquire ImmunoGen, Inc. ("IMGN") for a total equity value of approximately US$10.1 billion (the "Transaction"). AbbVie and IMGN currently anticipate that the Transaction will close in the middle of 2024.
The Company announced on 11 April 2023 an investment in a senior secured loan to IMGN of up to US$62.5 million in up to two tranches. As of today, the Company had funded the first tranche representing a US$37.5 million investment. The loan is expected to be prepaid upon the closing of the Transaction. Pursuant to the senior secured loan agreement, in connection with the Transaction and the repayment of outstanding principal, the Company is expected to receive a make-whole payment for the remainder of the three-year make-whole period along with a prepayment premium of 3%, in each case with respect to the principal repaid. For illustrative purposes, if the Transaction were to close on 30 June 2024, the Company would be expected to receive approximately US$14.5 million in prepayment and make-whole fees.
Another 1.75c +2c special yielding 10%+ now, LMDX situation can't be that bad!
BioPharma Credit PLC (LSE: BPCR), the specialist life sciences debt investor, is pleased to declare an interim dividend in respect of the financial period ended 30 September 2023 of $0.0375 per ordinary share, payable on 5 January 2024 to ordinary shareholders on the register as at 8 December 2023. The ex-dividend date will be 7 December 2023.
The Company has chosen to designate the entire amount of this interim dividend as an interest distribution. Shareholders in receipt of such a dividend will be treated for UK tax purposes as though they have received a payment of interest. This will result in a reduction in the corporation tax payable by the Company.
The $0.0375 dividend comprises an ordinary dividend of $0.0175 and a special dividend of $0.0200 The Company is currently paying and continues to target a 7 cent annual dividend per ordinary share.
Citywire article 2nd Nov
"Yesterday, chief executive and chair Ron Zwanziger, chief technology officer and director David Scott, and chief scientist and director Jerry McAleer handed in their resignations, effective immediately, according to a stock exchange announcement."
And
"LumiraDX has outstanding debts of $350m and an equity valuation of just $26m. Having faced liquidity issues for several months, the company had to amend its $173m loan with BPCR for the 15th time yesterday."
Looks to me that BPCR are not getting paid more than a few cents per dollar on this capital
Bumped +36% today on huge volume 74mil to 13.5c no news I can see
I can't find any LMDX buyer news, the most recent I can see is a Nasdaq delisting with shares at 9 cents?
Biopharma have $150K in Lumira so about 12% of the portfolio I think based on 2023 half year?
$BPCR will be up on news of $LMDX buyer
Looks like BPCR extended the LMDX loan agreement several times and now they have a buyer.
At 86 cents this is yielding 8% and as you say decent record.
what others have higher dividends?
Pros: An interesting/quirky debt/royalty company with a decent dividend and good track record
Cons: An overly concentrated portfolio; some of the US BDCs already have biopharma on their books; are more diversified; are more liquid and offer even higher yields - take your pick from 40+ listed companies, many with an equally long track record.
Last i read was this;
BioPharma Credit PLC - specialist life sciences debt investment trust - Notes filing by LumiraDx Ltd which discloses an amendment to the loan agreement entered into with BioPharma Credit, BPCR LP, and BioPharma Credit Investments V (Master) LP. On Monday, LumiraDx said it had amended its loan agreement, by extending the time it has to comply with certain minimum net sales and minimum liquidity covenants in the agreement until July 20.
More LumiraDx worries ?
This must be approaching the point at which LumiraDx has been written down to zero by investors.
Hi Guys,
Looking good. On Thursday, goes ex-dividend, with a Quarterly Dividend of 1.75 cents, + a Special Dividend, of a further 1.58 cents. Have just bought my first shares in this company.
BW’s,
Hulvard
.............according to Malwarebytes.
25.2% invested in Sarepta Therapeutics Inc; 9.6% in Collector AB and 7.9% in Epizyme Inc. 3 investment taking up 42.7%. Is that not too high a risk?
NEW INVESTMENT OF UP TO US$150.0 MILLION
US$50.0 million immediately deployed