Hayfin Capital Management executed a $400 million credit facility for Amicus Therapeutics, a biotechnology company focused on discovering, developing and delivering novel medicines for rare diseases.
“Today’s agreement with Hayfin has provided us a path to attain profitability without the need to access the equity markets,” John F. Crowley, chairman and CEO of Amicus Therapeutics, said. “Our continued revenue growth, prudent expense management and great growth potential has allowed us to reach this important milestone as we continue to achieve on our vision of delivering groundbreaking and potentially curative new medicines for people living with rare diseases around the world.”
The new credit facility has an interest rate at 6.5% above LIBOR, subject to a 100-basis-point floor. It also requires interest-only payments until mid-2024 and matures in 2026. The full amount of this senior-secured term loan facility is available and will be fully drawn at close. There are no warrants or any equity conversion features associated with the loan. Amicus Therapeutics will use the proceeds to refinance existing debt and for other general corporate and product development purposes.
“Our investment in Amicus, with its strong position in rare diseases, is consistent with our strategy to back innovative life sciences businesses,” Howard Rowe, managing director and head of healthcare at Hayfin Capital Management, said. “We look forward to working with the Amicus team.”
“Securing this financing with market setting terms gives us a strong financial platform to advance both patient and Amicus shareholder interests,” Daphne Quimi, CFO of Amicus Therapeutics, said. “Defining now a clear path to profitability, without the need for any future dilutive financing, reflects the global profile of Amicus today and our future. The execution of our plan will require strong financial discipline, continued oversight guided by financial performance and the passionate entrepreneurship of our Amicus team. We are fully on track this year to achieve Galafold revenue between $250 million to $260 million and we are confident in achieving operating expense within the stated range.”
Hayfin Capital Management is a European alternative asset management firm with approximately €15 billion ($17.13 billion) of assets under management.
