Daily News: November 8, 2018

Oaktree Provides $150MM Term Loan to Sorrento Therapeutics


Sorrento Therapeutics, a clinical-stage immunotherapy biotech company, closed a debt financing for up to $150 million. The financing was provided by funds and accounts managed by Oaktree Capital Management.

The financing consists of a senior secured five-year term loan, with the first tranche of $100 million already funded and an additional tranche of $50 million available subject to Sorrento’s achievement of certain business milestones in the next nine to twelve months.

An affiliate of Oaktree is the sole administrative agent and collateral agent for the financing, and Morgan Stanley served as the sole placement agent on the transaction.

“With this financing, we believe we now have adequate funding for up to the next two years, enabling us to bring several of our key clinical programs in the CAR-T and non-opioid pain management space to FDA approvals and potential commercialization,” said Henry Ji, Ph.D., chairman, president and CEO of Sorrento. “Additionally, with encouraging data readout from our ongoing Anti-CEA trial for liver metastases among pancreatic cancer patients and our recently initiated Anti-CD38 CAR-T trial for multiple myeloma cancer patients, we are optimistic about potential collaborations with strategic partners.”