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Biopharma Credit seeks cash to fund investments
Posted on Friday, 09 March 2018 12:16
Biopharma Credit is tapping investors for USD 300.00 million in cash in a C-share issue open to private and professional buyers exactly one year after its initial public offering.
Fund manager Mark Barnett, who owns about 11.0 per cent of the company, has agreed to join the deal.
The group plans to use the proceeds to acquire further investments to create an increasingly diversified portfolio for investors.
Since its stock market flotation, which raised USD 300.00 million in March last year, Biopharma Credit has had outstanding potential commitments of up to USD 350.00 million.
Chief executive Pedro Gonzalez de Cosio told City AM recently that the group’s plans are to pick out early-stage life sciences companies small enough to need capital but with enough cash flow to provide support.
However, he added that there are a limited number of businesses in that situation in the UK.
Commenting on the capital increase, Gonzalez de Cosio noted: “Following the investments and commitments made since IPO, the company is well on its way to meeting its objective of building an attractive portfolio of life sciences debt investments.
“There continues to be a robust pipeline of investment opportunities that require the company to access additional capital in order to finance new investments and fund existing commitments.”
Some of Biopharma Credit’s injections over the last 12 months include oncology-focused biopharmaceutical company Tesaro for USD 222.00 million, USD 124.50 million in fully-integrated drug group Lexicon, and USD 150.00 million in commercial stage cancer therapy firm NovoCure.
To fund such deals, the group plans to issue 300.00 million shares at a price of USD 1.00 apiece in the offering, and may issue a further 2.00 billion in new ordinary stock or C-scrips, according to the announcement.
Biopharma Credit recorded total net assets of USD 922.57 million at 31st December 2017, with a total net income for the period from 24 October 2016 to the end of December last year of USD 39.31 million and a net asset value per share of USD 1.01.
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