Rare disease drugmaker Amicus Therapeutics said that it has executed a definitive agreement with Hayfin Capital Management for a $400 million credit facility that it said puts it on a path to profitability without turning to equity markets.
“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,” said John Crowley, chairman and CEO of Amicus.
The credit facility provides Amicus with an interest rate at 6.5 percent above LIBOR, subject to a 100-basis-point floor. It requires interest-only payments until mid-2024 and matures in 2026. The full amount of the facility is available and will be fully drawn at close.
The company said there are no warrants, or any equity conversion features associated with the loan.
The proceeds will be used to refinance existing debt and for other general corporate and product development purposes.
“Securing this financing with market setting terms gives us a strong financial platform to advance both patient and Amicus shareholder interests,” said Daphne Quimi, Amicus chief financial officer. “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 transaction is subject to completion of customary closing conditions. The new loan is expected to be funded prior to August 4, 2020.
Photo: John Crowley, chairman and CEO of Amicus
Author: Rare Daily Staff
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