Ares Management Provides $125M Non-Dilutive Debt Refinancing to Amryt

Amryt, a global, commercial-stage biopharmaceutical company dedicated to acquiring, developing and commercializing novel treatments for rare diseases, secured $125 million of senior credit facilities from funds managed by the credit group of Ares Management. Amryt will use a portion of the proceeds to refinance its previous secured term debt facility, which has an outstanding balance of $94 million, an interest rate of 13.00% and a maturity date of September 2024. The new facilities will generate significant annual interest cost savings as well as provide for important strategic flexibility as Amryt looks to continue to grow its global rare disease presence.

Key features of the new facilities include:

• Total new facilities of $125 million, consisting of:_x000D_
  • $85 million term loan facility with interest rate of SOFR+6.75%, subject to a 0.90% SOFR floor

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  • $40 million revolving credit facility with $20 million drawn at close and interest rate of SOFR+4%, subject to a 0.90% SOFR floor

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• Quarterly blended cash interest rate of SOFR+5.87% (assuming fully drawn), subject to a 0.90% SOFR floor, substantially lower than Amryt’s current secured term debt facility at 13% interest

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• Requires interest-only payments until facility matures in February 2027

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• There are no warrants or any equity conversion features associated with the new facilities

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• The proceeds will be used to refinance existing debt, for general corporate and product development purposes; and potentially for shareholder approved share repurchase programs

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“We are pleased to announce the refinancing of our term debt facilities with Ares,” Dr. Joe Wiley, CEO of Amryt Pharma, said. “The refinancing further strengthens our balance sheet, significantly reduces our interest costs and extends the maturity profile of our term debt facilities through 2027.”

“Amryt Pharma focuses on important therapies for patients and their families who seek treatments to manage rare diseases,” Dr. Douglas Dieter, partner in the Ares Management credit group, said. “Ares is pleased to provide Amryt with a capital solution that supports the company in this next phase of its commercial growth as it continues to grow its global rare disease capabilities and market presence.”

The new loan was funded on Feb. 18. Canaccord Genuity and Moelis & Company acted as joint financial advisors to Amryt on this transaction. Gibson, Dunn & Crutcher acted as legal advisor to Amryt.