Coherus BioSciences draws $100 million tranche B term loan

By Marisa Wong

Los Angeles, April 1 – Coherus BioSciences, Inc. drew down an additional $100 million under its previously disclosed loan agreement dated Jan. 5, according to an 8-K filed Friday with the Securities and Exchange Commission.

The tranche B loan was funded on March 31, following the delivery of evidence of repayment of all debt outstanding under the company’s 8.2% senior convertible notes due March 2022 at their maturity, along with other customary deliverables.

As previously reported, the $300 million senior secured term loan is to be funded in four committed tranches. Tranche A totaling $100 million was funded at closing on Jan. 5; tranche B for $100 million was just funded on March 31; tranche C for $50 million is to be funded at the company’s option between April 1 and March 17, 2023, subject to some conditions including the first U.S. Food and Drug Administration approval of a biologics license application for the company’s product candidate CHS-007 (toripalimab) in the United States; and tranche D for $50 million is to be funded at the company’s option between April 1 and March 17, 2023, subject to some conditions including the first FDA approval of a biologics license application for the company’s product candidate CHS-201 (ranibizumab biosimilar) in the United States.

The company has the right to request an uncommitted additional facility amount of up to $100 million after the tranche A closing date that will be subject to new terms and conditions.

The term loans mature on either the fifth anniversary of the tranche A closing date or Oct. 15, 2025, if the outstanding aggregate principal amount of the company’s 1.5% convertible senior subordinated notes due 2026 is greater than $50 million on Oct. 1, 2025.

The term loans bear interest at Libor plus 825 basis points, subject to a 1% Libor floor. The loan agreement includes provisions to replace Libor with SOFR.

Repayment of outstanding principal of the term loans will be made in five equal quarterly payments of principal beginning after the 48-month anniversary of the tranche A closing date.

BPCR LP and Biopharma Credit Investments V (Master) LP are lenders under the loan agreement, with BioPharma Credit plc as collateral agent.

The clinical biologics platform company is based in Redwood City, Calif.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.