Zealand Pharma inks €90 million finance agreement with EIB

By Mary Katherine Stinson

Lexington, Ky., Dec. 22 – Zealand Pharma A/S has obtained €90 million in a financing agreement from the European Investment Bank, according to a press release.

The facility may be utilized in up to three tranches each with a term of six years, tranche A totaling €50 million, tranche B totaling €20 million and tranche C totaling €20 million. Each tranche is subject to pre-specified milestones being met.

The conditions for disbursement of tranche A have been met and it is expected to be available to Zealand in the beginning of 2024.

The loan is structured with part of the interest paid at recurring intervals during the term and part being deferred (non-compounding) for payment at maturity of each tranche.

Additionally, EIB and Zealand will enter into a warrant agreement that will entitle EIB to receive warrants with each drawdown, allowing the bank to subscribe for ordinary shares in Zealand at market price.

Van Lanschot Kempen advised Zealand Pharma in the transaction.

The biotechnology company is based in Copenhagen.

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