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(Alliance News) - BioPharma Credit PLC on Friday said it, alongside subsidiary BioPharma Credit Investments V Master LP, has agreed to buy senior secured notes of OptiNose US Inc for up to USD150 million.
OptiNose US is a subsidiary of pharmaceutical firm OptiNose Inc, which has a market capitalisation of USD280 million.
Senior secured notes worth up to USD150 million will be issued and sold in up to four tranches, BioPharma said, each maturing in September 2024. Under the first tranche OptiNose US will issue senior secured notes for USD80 million.
The life sciences debt investor said its share of the USD150 million offering will be up to USD82.5 million, and it will initially invest USD44.0 million under the first tranche.
Proceeds from the issuance and sale of the first tranche of senior secured notes will be used to repay and retire OptiNose's existing term loan with Athyrium Opportunities III Acquisition LP, which had an outstanding balance of USD75.0 million and a maturity date of June 2023.
Following this, senior secured notes worth USD30 million will be issued by February 2020, subject to the achievement of a sales milestone.
Two additional tranches of senior secure notes, worth USD20 million each, will be available for issuance and sale at OptiNose's choice, subject to the achievement of sales milestones, prior to August 2020 and February 2021.
BioPharma Credit shares were trading flat in London on Friday at USD1.02 each.