UPDATE ON INVESTMENT

BioPharma Credit PLC

15 March 2024

 

BioPharma Credit PLC

15 March 2024

BIOPHARMA CREDIT PLC

(THE "COMPANY")

UPDATE ON INVESTMENT

The Company notes the filing of a Form 10-K and Form 8-K made on 14 March 2024 by UroGen Pharma Ltd. ("URGN"), which discloses the amendment and restatement of its loan agreement entered into with the Company, BioPharma Credit Investments V (Master) LP ("BioPharma-V"), and BPCR Limited Partnership (the "A&R Loan Agreement").

The A&R Loan Agreement includes an additional third and fourth tranche of senior secured loans. Under the A&R Loan Agreement the third and fourth tranches were allocated in full to BioPharma-V.

The sole allocation of the third and fourth tranches to BioPharma-V under the A&R Loan Agreement took into consideration the Company's current Discount Control Mechanism (the "DCM"), as updated by the Company on 7 November 2022. Under the DCM, if in any 6-month rolling period the Company's shares on average traded at a discount in excess of 10 per cent. to the NAV per share, the Company is required to apply 100 per cent. of the principal being returned to repurchase shares until such time that the discount to NAV over a two-week period is less than 5 per cent.

Background and Further Detail on the Additional Tranches

The Company announced on 8 March 2022 a US$100 million senior secured loan to URGN, with each of the Company and BioPharma-V investing up to US$50 million. The Company had previously funded to URGN US$37.5 million (of a US$75 million first tranche) at closing and US$12.5 million (of a US$25 million second tranche) on 16 December 2022.

The third tranche of US$25 million is mandatory and is required to be drawn by URGN by 30 September 2024, subject to satisfaction of customary conditions. The fourth tranche of US$75 million may be drawn at URGN's option no later than 29 August 2025, subject to (i) having successfully drawn the immediately preceding US$25 million tranche, (ii) receiving US FDA approval of an NDA for UGN-102 no later than 30 June 2025, and (iii) satisfaction of customary conditions. In addition, the interest rate was reduced from 3-month SOFR plus 8.25 per cent. per annum to 3-month SOFR plus 7.25 per cent. per annum, and the SOFR floor was increased from 1.25 per cent. to 2.5 per cent. A one-time additional consideration of 1.75 per cent. of the third and fourth tranche will be payable upon funding of each respective tranche.

Enquiries:

BioPharma Credit plc

via Link Company Matters Limited

Company Secretary

[phone]

 

END