Refinancing of Debt Facility

RNS Number : 7350J

Oxford Biomedica PLC

30 June 2017

 

Oxford BioMedica Announces Refinancing of Debt Facility

London, UK - 30 June 2017: Oxford BioMedica plc ("Oxford BioMedica" or "the Group") (LSE: OXB), a leading gene and cell therapy group, is pleased to announce it has today completed a new $55 million debt facility with Oaktree Capital Management - Strategic Credit Strategy ("Oaktree"). The facility has been used to redeem the existing debt facility with Oberland Capital Healthcare.

The loan is repayable no later than 29 June 2020 although it may be repaid, at the Group's discretion, at any time subject to early prepayment fees and an exit fee. The loan carries an interest rate of 9.0% plus US$ LIBOR, subject to a minimum of 1%. Subject to achieving certain conditions, the interest rate could reduce by 0.25% in the second year and a further 0.25% in the third year.

Under the agreement the Company will issue 134,351,226 warrants to Oaktree, equivalent to 4.4% of the enlarged Group's share capital. These warrants are exercisable at the nominal share price of 1p and may be exercised at any time over the next ten years.

Assuming that the loan is repaid on the third anniversary and that the interest rate reductions described above are achieved, with US$ LIBOR at current rates the cost of the loan including all related fees will be around 11.5%, a significant reduction from the 15% cost of the Oberland facility.

The loan will be secured over all assets of the Group, including intellectual property. The terms also include financial covenants relating to the achievement of revenue targets and the requirement to hold a minimum of $5 million cash at all times. The $10 million cash ring-fenced in a separate bank account under the Oberland agreement will be released.

John Dawson, Chief Executive Officer of Oxford BioMedica, commented: "The new debt facility secured from Oaktree will be on significantly improved terms compared to the Oberland facility. This is a reflection of the strong progress we have made in growing our revenue-generating business, providing bioprocessing and process development services based on our world-leading LentiVector^® delivery platform to partner companies including Novartis."

This announcement contains inside information.

- Ends -

For further information, please contact:
Oxford BioMedica plc: John Dawson, Chief Executive Officer Tim Watts, Chief Financial Officer	Tel: [phone]
Consilium Strategic Communications Mary-Jane Elliott/Matthew Neal/Chris Welsh/Laura Thornton	Tel: [phone]
Jefferies (Corporate Broker): Gil Bar-Nahum Simon Hardy Lee Morton Max Jones Nicholas Moore	Tel: [phone]

Notes for editors

About Oxford BioMedica^®

Oxford BioMedica (LSE:OXB) is a leading gene and cell therapy company focused on developing life changing treatments for serious diseases. Oxford BioMedica and its subsidiaries (the "Group") have built a sector leading lentiviral vector delivery platform (LentiVector^®) through which the Group develops in vivo and ex vivo products both in-house and with partners. The Group has created a valuable proprietary portfolio of gene and cell therapy product candidates in the areas of oncology, ophthalmology and CNS disorders. The Group has also entered into a number of partnerships, including with Novartis, Sanofi, GSK, and Immune Design, through which it has long-term economic interests in other potential gene and cell therapy products. Oxford BioMedica is based across several locations in Oxfordshire, UK and employs more than 250 people. Further information is available at www.oxfordbiomedica.co.uk.

 

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