Fortress Biotech entered into a $60 million loan agreement with funds managed by Oaktree Capital Management. Fortress Biotech expects to use the proceeds from the five-year loan to refinance existing indebtedness. The loan will mature in August 2025.
“We are very pleased to close this transaction with Oaktree,” Lindsay A. Rosenwald, MD, chairman, president and CEO of Fortress Biotech, said, The proceeds of this investment will quickly strengthen our near-term liquidity, address the maturity of our existing debt agreements and will reduce our cash debt service costs. This agreement provides additional resources to Fortress to bolster our business development and operating initiatives, as well as build upon our long-term growth strategy, which includes key goals of bringing meaningful treatment options to patients in need and enhancing shareholder value.”
“We are delighted to partner with Fortress to provide financial support so they can refinance existing debt and focus on acquiring, developing and commercializing high-potential marketed and development-stage products and product candidates,” Aman Kumar, managing director at Oaktree, said. “We are extremely excited by the Fortress model and value creation strategy. We believe Fortress is well-positioned to deliver on key value-creating catalysts for the next several years.”
Cantor Fitzgerald & Co served as financial advisor to Fortress and Sidley Austin served as legal counsel to Fortress. Sullivan & Cromwell served as legal counsel to Oaktree.
Fortress Biotech is a biopharmaceutical company focused on acquiring, developing and commercializing marketed pharmaceutical products and development-stage pharmaceutical product candidates.