Oxford Biomedica, a gene and cell therapy group, refinanced the $85 million secured 12-month loan facility from funds managed by Oaktree Capital Management.
Under the terms of such refinancing, the company has partially repaid the outstanding amounts under the short-term loan facility and amended the facility into a new senior secured four-year term loan facility provided by Oaktree in a principal amount of $50 million.
The amended term loan contains similar terms to the prior 12-month loan facility and includes the usual and customary provisions relating to mandatory prepayments, covenants and representations and warranties. The term loan will mature four years after the date of completion and will not amortize, with the full aggregate principal and outstanding amount being 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 be guaranteed by the company’s wholly-owned subsidiaries, with customary exceptions. The term loan carries a variable interest rate, which is capped at 10.25% per annum and payable quarterly in cash, with up to 50% of interest for the first twelve months payable in kind as additional loan principal, at the option of the company. The interest rate is subject to downward adjustment following the satisfaction of certain commercial conditions.
The company also has secured the option, subject to customary conditions and available for a three-year period, to drawdown a further $25 million from Oaktree to fund certain permitted acquisitions.
“We are pleased to complete the refinancing of this loan, which will give us continued operational flexibility as we progress on delivering our strategic objectives,” Stuart Paynter, CFO of Oxford Biomedica, said. “We continue to have a strong net cash position and have significantly extended the term of this facility which was originally taken out at the time we established Oxford Biomedica Solutions.”
“We are pleased to have the opportunity to extend our long-term relationship with Oxford Biomedica via this non-dilutive term financing,” Aman Kumar, co-portfolio manager of life sciences lending at Oaktree, said. “Since our initial investment in 2017, we have been impressed by the company’s progress to cement itself as a leader in viral vector manufacturing.”
