BioPharma Credit PLC STATEMENT RE TESARO (7996N)
23 January 2019 - 3:00AM
UK Regulatory
TIDMBPCR
RNS Number : 7996N
BioPharma Credit PLC
22 January 2019
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 Tranche
A 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.
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
END
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