Modification of the short-term loan facility to a new term loan
The information contained in this press release is considered by the Group to be inside information within the meaning of Regulation (EU) No 596/2014 on market abuse (as it forms part of national law under the Withdrawal Act 2018). of the European Union) . Upon publication of this announcement via the Regulatory Information Service, this inside information is now considered to be in the public domain.
Modification of the short-term loan Ease into a new term loan facility with Oaktree
- Partial repayment and modification of $85 million Oaktree loan facility completed
- Extended relationship with Oaktree through new $50 million four-year term loan facility with variable interest rate capped at 10.25% per annum
Oxford, UK – seven October 2022: Oxford Biomedica plc (LSE:OXB) (“Oxford Biomedica” or “the Company”), a leading gene and cell therapy group, today announces that it has refinanced the $85 million secured loan facility over 12 months from funds managed by Oaktree Capital Management, LP (“Oaktree”) (the “Short Term Loan Facility”) previously announced in March 2022.
Pursuant to this refinancing, the Company partially repaid amounts outstanding under the short-term loan facility and amended the facility into a new four-year senior secured term loan facility provided by Oaktree for a principal amount of US$50 million (the “Term Loan”).
The Amended Term Loan contains terms similar to the previous 12 month loan facility and includes customary and customary provisions relating to mandatory prepayments, covenants and representations and warranties. The term loan will mature four years after the completion date and will not be amortized, with all principal and outstanding amount repayable on the final maturity date.
The term loan will be secured by substantially all of the present and subsequently acquired assets of the Company and its wholly-owned subsidiaries and will be secured by the Company’s wholly-owned subsidiaries, with customary exceptions. The term loan bears a variable interest rate, capped at 10.25% per annum and payable quarterly in cash, with up to 50% interest for the first twelve months payable in kind as principal of the additional loan , at the discretion of the Company. The interest rate is likely to be adjusted downwards following the satisfaction of certain commercial conditions.
The Company has also obtained the option, subject to customary conditions and available for a period of three years, to draw an additional US$25 million from Oaktree to fund certain permitted acquisitions.
Stuart Paynter, Chief Financial Officer of Oxford Biomedica, commented: “We are pleased to finalize the refinancing of this loan, which will give us continued operational flexibility as we progress towards our strategic objectives. We continue to have a strong net cash position and have significantly extended the term of this facility which was originally purchased when we established Oxford Biomedica Solutions.”
Aman Kumar, Co-Head of Life Sciences Lending Portfolio at Oaktree, commented: “We are delighted to have the opportunity to extend our long-term relationship with Oxford Biomedica through this non-dilutive term financing. Since our initial investment in 2017, we have been impressed with the progress to assert itself as a leader in the manufacture of viral vectors.
Oxford Biomedica plc:
Stuart Paynter, Chief Financial Officer – T: +44 (0)1865 783 000
Taylor Boyd, Vice President, Head of IR – Tel: +1 919 539 1234
Sophia Bolhassan, VP, Corporate Affairs and IR – T: +44 (0) 7394 562 425
Consilium Strategic Communications:
T: +44 (0)20 3709 5700 / E: [email protected]
Mary-Jane Elliott / Matthew Cole / Angela Gray
About Oxford Biomedica
Oxford Biomedica (LSE:OXB) is an innovative viral vector specialist focused on delivering life-changing therapies to patients.
Oxford Biomedica plc and its subsidiaries (the Group) work on key viral vector delivery systems, including those based on lentiviruses, adeno-associated viruses (AAVs) and adenoviruses, providing innovative solutions to biotechnology and biopharmaceutical companies of cell and gene therapy for the development of their processes, analytical development and manufacturing needs. Oxford Biomedica has built an industry-leading lentiviral vector delivery system, the LentiVector® Platform, and is working on preclinical to commercial-stage programs in a range of therapeutic areas with global partners.
Oxford Biomedica is multi-site based and headquartered in Oxfordshire, UK. In 2022, the Group created Oxford Biomedica Solutions, a US manufacturing and innovation subsidiary of AAV, based near Boston, USA.
Further information is available at www.oxb.com.
Oaktree is a leader among global investment managers specializing in alternative investments, with $159 billion in assets under management as of June 30, 2022. The firm emphasizes an opportunistic, value-driven, risk-controlled approach for investments in credit, private equity, real estate assets and listed shares. The company has more than 1,000 employees and offices in 20 cities around the world. For more information, please visit Oaktree’s website at http://www.oaktreecapital.com.