Beam Therapeutics entered into a strategic financing agreement with Sixth Street for long-term, non-dilutive capital to fund the potential launch of ristoglogene autogetemcel (risto-cel) in sickle cell disease (SCD). The $500 million senior secured credit facility includes $100 million funded at close; up to $300 million available upon the achievement of certain clinical, regulatory, and commercial milestones for risto-cel; and an additional $100 million available at Beam’s option, subject to mutual agreement between the parties, during the seven-year term of the agreement.
“This strategic financing provides Beam with significant flexibility and long-term, non-dilutive capital to support the anticipated commercial launch and subsequent revenue generation for risto-cel, which we believe has the potential to be a best-in-class, one-time treatment for sickle cell disease,” Sravan Emany, chief financial officer of Beam Therapeutics, said. “By underwriting the commercialization costs of risto-cel, this facility secures this important, high-value franchise and also enhances our ability to direct our capital to the growth of our pipeline and execute our long-term vision for precision genetic medicines.”
Jeff Pootoolal, partner at Sixth Street, said, “Beam has built a differentiated base editing platform with the potential to deliver precision genetic medicines across a broad range of serious diseases. The company’s focus on programs with compelling clinical and commercial potential positions it well for long-term value creation, driven by innovative technology that could make a meaningful impact for patients. Sixth Street is committed to long-term partnerships with companies we believe can overcome healthcare challenges and improve patient care. Beam is one of those companies, and we look forward to continuing to deepen our relationship as they progress toward important clinical, regulatory and commercial milestones.”
The credit facility matures in early 2033 and bears interest at an annual rate of approximately 10% based on current forward projections for SOFR. The facility does not provide for scheduled amortization payments, and all principal amounts will be due at maturity in early 2033.
Beam may prepay loans under the credit facility at any time, subject to customary yield maintenance and prepayment premiums during the early years of the facility. The company is expecting to draw a minimum of $200 million of capital under the overall facility and make mandatory prepayments from certain non-ordinary course proceeds, including proceeds from non-permitted debt issuances, asset sales and other extraordinary receipts, subject to customary thresholds and reinvestment rights. All obligations under the credit facility are secured on a first-priority basis, subject to customary exceptions, by liens on substantially all assets of Beam and its subsidiaries.
WilmerHale served as legal advisor to Beam. Proskauer and Mintz acted as legal advisors to Sixth Street.
