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22 Jan 2019 16:00
22 January 2019
BIOPHARMA CREDIT PLC
(THE "COMPANY")
STATEMENT RE TESARO
Pharmakon Advisors, the Investment Manager of BioPharma Credit PLC (the "Company") notes the announcement released today by GlaxoSmithKline plc ("GSK") regarding the completion of its acquisition of TESARO Inc ("TESARO"). As a result of this transaction, TESARO will repay its $500.0 million loan together with a make-whole and prepayment premium on 23 January 2019. The Company will receive a payment of $370.0 million on its $322.0 million share of the loan as per the table below:
(values in $ millions) |
|
|
|
| Tranche A | Tranche B | Total |
Principal Amount | $222.0 | $100.0 | $322.0 |
Accrued interest | $1.5 | $0.7 | $2.2 |
Make-whole Amount | $21.1 | $14.9 | $36.0 |
Prepayment Premium | $6.7 | $3.0 | $9.7 |
Payoff Amount | $251.3 | $118.6 | $369.9 |
The $45.7 million to be received by the Company as make-whole and prepayment represents 14.2% of the $322.0 million investment, which is the equivalent of what the Company would have received had the loan remained outstanding for another fifteen months, approximately.
Following TESARO's repayment, the Company will have a cash balance of approximately $760.0 million which will be used to fund future investments, pre-agreed investment obligations and upcoming dividends. Pharmakon Advisors, the Company's investment manager, expects that the Company will be able to redeploy its total available cash reserves within the next twelve months.
The Company continues to note a highly supportive environment for its investment strategy and looks forward to updating shareholders on the further deployment of funds.
Enquiries
BioPharma Credit plc
via Link Company Matters Limited
Company Secretary
+44 (0)1392 477 509
Buchanan
+44 (0)20 7466 5000 / biopharmacredit@buchanan.uk.com
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.
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