Oxford BioMedica, a UK-based gene and cell therapy group, completed a new $55 million debt facility with Oaktree Capital Management. The facility has been used to redeem the existing debt facility with Oberland Capital Healthcare.

The loan is repayable no later than June 29, 2020 although it may be repaid, at the group’s discretion, at any time subject to early prepayment fees and an exit fee. The loan carries an interest rate of 9.0% plus U.S. dollar LIBOR, subject to a minimum of 1%. Subject to achieving certain conditions, the interest rate could reduce by 0.25% in the second year and a further 0.25% in the third year.

The loan will be secured over all assets of the group, including intellectual property. The terms also include financial covenants relating to the achievement of revenue targets and the requirement to hold a minimum of $5 million cash at all times. The $10 million cash ring-fenced in a separate bank account under the Oberland agreement will be released.

John Dawson, CEO of Oxford BioMedica, said, “The new debt facility secured from Oaktree will be on significantly improved terms compared to the Oberland facility. This is a reflection of the strong progress we have made in growing our revenue-generating business, providing bioprocessing and process development services.”