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XOMA unit gets up to $140 million loan in two parts via Blue Owl
By Wendy Van Sickle
Columbus, Ohio, Dec. 19 – XOMA Corp., through its XRL 1 LLC subsidiary, entered into a non-dilutive, non-recourse, royalty-backed loan for up to $140 million with funds managed by the credit platform of Blue Owl Capital Inc., according to a news release and an 8-K filing with the Securities and Exchange Commission.
The principal and interest is to be paid from royalties received from worldwide net sales of Vabysmo, a prescription injection used to treat eye conditions, including wet age-related macular degeneration. The borrower is obligated to make semiannual interest payments at a fixed rate of 9.875% per annum until the royalty-backed loan is repaid.
The loan matures on Dec. 15, 2038, but may be repaid in full any time prior to then.
The loan includes an initial term loan in a total principal amount of $130 million and a delayed-draw term loan of $10 million to be funded at the option of the borrower upon receipt by the lenders of payments of principal and interest from the proceeds of commercial payments related to Vabysmo in excess of an agreed upon amount on or prior to March 15, 2026.
The borrower paid Blue Owl a market rate of original issue discount and during the term of the loan, XOMA will also pay Blue Owl an administrative fee at a market rate.
XRL 1 granted Blue Owl a first-priority perfected lien on, and security interest in commercial payments and the proceeds thereof and all other of its assets. XOMA (US) LLC granted Blue Owl a first-priority perfected lien on and security interest in 100% of the equity of XRL 1, and XOMA issued to Blue Owl warrants to purchase up to 40,000 shares of its common stock at an exercise price of $35 apiece.
XOMA is an Emeryville, Calif.-based biotech company.
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