Biopharma Credit Share Discussion Threads

[davebowler] 11/2/2024 21:45

Johnson and Johnson under attack.....hTTps://twitter.com/perry_ron/status/1756319357179953277?t=eQnkXKv7pxSKH3wbg3FtpQ&s=19

[speedsgh] 09/2/2024 12:21

Q4 dividend announcement which includes another special div taking FY payment to 10.21 cents...

-------------------------

Dividend Declaration -

2.96 CENT PER SHARE DISTRIBUTION INCLUDES 1.2 CENT SPECIAL DECLARATION

BioPharma Credit PLC (LSE: BPCR), the specialist life sciences debt investor, is pleased to declare an interim dividend in respect of the financial period ending 31 December 2023 of $0.02957930 per ordinary share, payable on 15 March 2024 to ordinary shareholders on the register as at 16 February 2024. The ex-dividend date will be 15 February 2024. The Company has chosen to designate the entire amount of this interim dividend as an interest distribution. Shareholders in receipt of such a dividend will be treated for UK tax purposes as though they have received a payment of interest. This will result in a reduction in the corporation tax payable by the Company.

The $0.02957930 dividend comprises an ordinary dividend of $0.0175 and a special dividend of $0.01207930. The Company is currently paying and continues to target a 7 cent annual dividend per ordinary share. This will bring total dividends for 2023 to 10.21 cents including special dividends totalling 3.21 cents.

[davebowler] 06/2/2024 10:43

Liberum-
Coherus to prepay 70% of loan
Analyst: Shonil Chande

Mkt Cap £937m | Share price $0.93 | Prem/(disc) -6.4% | Div yield 7.5%

Event

Coherus, BioPharma Credit’s fourth largest loan investment as at 31 December 2023, has announced plans to partially prepay $175m of the outstanding $250m principal balance under an existing loan agreement. BPCR, through its stake in the loan, is due to receive $87.5m, with the prepayment expected in Q2 2024. The residual balance on BPCR’s stake in the loan will be $37.5m.

Coherus recently announced an agreement to divest its ophthalmology business to Sandoz for $170m, with the deal expected to close in H1 2024. The product in question, Cimerli, accounted for c.54% of Coherus’ revenues. Prepaying most of the loan will reduce Coherus’ expected annual interest payments by c.70%.

Pharmakon Advisors, BPCR’s investment advisor, entered into a loan agreement with Coherus in January 2022. The facility provided Coherus with up to $300m, across four tranches, paying interest at 8.25% plus three-month LIBOR p/a, with a LIBOR floor of 1.00%.

Loan agreement with Coherus –prepayment fees and make-whole summaries

The following summary is based on the loan agreement with Coherus

Prepayment fees:

Before the third anniversary of the Tranche A Closing Date, the prepayment fee is 3.00% of the principal amount prepaid.
After the third anniversary but before the fourth anniversary of the Tranche A Closing Date, the prepayment fee is 2.00%.
Thereafter and before the Maturity Date, the prepayment fee is 1.00%.
Make-whole amount:

In addition to the prepayment fees, a make-whole amount will be payable for full or partial prepayment of a tranche before the second anniversary of the applicable funding. This amount is equal to the foregone interest from the date of prepayment through the second anniversary of the Tranche A Closing Date. Based on the available information, there is not likely to be any make-whole payment for the first two tranches advanced before April 2022.



Liberum view
We identified BPCR as one of our top picks in the recent model portfolio note. BPCR sits in a sweet spot by providing credit to established life sciences entities that are loathed to dilute their equity base.

BPCR will be due prepayment fees from Coherus repaying. Assuming the deal closes in June 2024, we estimate the prepayment fee due to BPCR will be c.$1.75m, based on the $87.5m principal and the 2.0% prepayment fee due after the third anniversary. On a pro-rata IRR basis, we estimate the 70% principal repayment and associated interest paid/loans advanced amounts to a c.12% IRR.

As at 31 December 2023, BPCR held cash of $212m. Across the ordinary dividends, special dividends, and share repurchases, BPCR is one of the most significant distributors within Alternative funds. Since the start of 2024, BPCR has spent $33.9m on share repurchases

[davebowler] 12/1/2024 15:31

Buyback Watch: BioPharma Credit (BPCR)

Announced buybacks are back on the agenda after issuing an update on its LumiraDx (LMDX) loan. Over to broker Jefferies for a quick summary: “This announcement marks a successful recovery of BPCR's troubled loan to LMDX. The business being sold to Roche represents 81.5% of the total loan amount outstanding, but 117% of BPCR's current carrying value for its 50% share of the loan, so implying a small c.2% NAV uplift. We also note there could be a further recovery of value for BPCR and the other senior lenders upon liquidation of the company. Importantly, BPCR is likely to be able to resume share buybacks now it is no longer an insider, with the recent EGM circular highlighting $115m of cash available for repurchases (equivalent to c.9% of NAV), aimed at closing the discount into 5%. All together this points to some healthy upside to the current share price, with the shares currently trading on a 16% discount to NAV, not least because the recovery firmly validates the manager's process and the strength of security in protecting the principal value of the loan.”

[gsbmba99] 02/1/2024 18:03

According to the 30 November factsheet, BPCR's share of the LumiraDx loan is valued at $126.3m (up slightly from 31 October presumably to reflect additional monies lent) and NAV is $1.01. Per the RNS, "the information as set forth below helped form the basis for the main assumptions reflected in the current valuation of the LumiraDx loan (as set forth in the October and November 2023 monthly updates)."

[gsbmba99] 02/1/2024 17:54

Excerpt:
"Jefferies analyst Matthew Hose said there could be a further recovery when LuxmiraDx is liquidated.

‘All together this points to some healthy upside to the current share price, with the shares currently trading on a 16% discount to NAV, not least because the recovery firmly validates the manager’s process and the strength of security in protecting the principal value of the loan,’ Hose said in a note early this morning, maintaining a ‘buy’ recommendation.

Stifel analyst Sachin Saggar said it was unclear whether the $362m LumiraDx owes includes accrued interest as the original loan of $331m was structured as a bullet loan, meaning no interest is paid until maturity. Interest since the initial loan in March 2021 would total about $30m a year, which could add a further 1.5% to the NAV.

Saggar called for BPCR’s chair Harry Hyman and fund manager Pedro Gonzalez de Cosio to review their response to LuxmiraDx’s problems, saying they should have written down the loan earlier ‘when the original risk underwritten has meaningfully changed’.

‘We would hope the manager and board reviews their valuation approach such that the next time a road bump occurs, risk is appropriately priced into the NAV.’"

[davebowler] 02/1/2024 10:43

Liberum-BioPharma Credit Wind down of LumiraDX and sale of assets to RocheAnalyst: Joachim KlementMkt Cap £859m | Share price $0.84 | Prem/(disc) -17.1% | Div yield 8.3%EventThe company announced that on 29 December 2023, LumiraDX appointed Andrew Johnson, Lisa Rickelton, and Lindsay Hallam of FTI Consulting as administrators for two of its subsidiaries that hold essentially all assets of LumiraDX. The administrators have entered into a sale and purchase agreement with Roche Diagnostics providing for the acquisition of LumiraDX's point-of-care diagnostics platform business for $295m. The sale is subject to antitrust and foreign direct investment approvals but will close as soon as these approvals are received. Until the approval, BioPharma Credit Investments V and BPCR Limited have agreed to provide up to $59.2m in funding for LumiraDX for the ongoing operations. Under the purchase agreement, Roche has agreed to reimburse the lenders for up to $55m in funds.With the appointment of the administrators, the loans of BPCR to LumiraDX are considered to be in default. The principal amount of the defaulted loans is $361.8m and, together with the accrued interest, is immediately due. Since LumiraDX is unable to pay the sum immediately, the loan will be satisfied from the assets sold as part of the wind-down. It is expected that shareholders and unsecured creditors will not receive any distributions and all distributions will go to secured creditors to pay for outstanding debt.Pharmakon Advisors has said that the information in this morning's announcement helped form the basis for the main assumptions reflected in the current valuation of the LumiraDx loan (and was reflected in the November NAV). The valuation of BPCR's investment was written down materially in October, but it is unclear at this stage whether further losses will be realised. The current discount to NAV on which BPCR currently trades provides plenty of downside protection in our view, however, with Lumira representing c.9.6% of NAV.

[speedsgh] 02/1/2024 09:43

UPDATE ON INVESTMENT -

BioPharma Credit PLC (LSE: BPCR) notes the filing of a Form 6-K made on 29 December 2023 by LumiraDx Limited ("LumiraDx"), which is copied below in part for convenience and can be found in its entirety at: LumiraDx Form 6-K Report. Pharmakon Advisors, LP (the "Investment Manager") notes the information as set forth below helped form the basis for the main assumptions reflected in the current valuation of the LumiraDx loan (as set forth in the October and November 2023 monthly updates). The Investment Manager will continue to provide updates in due course, including with respect to the status of the acquisition and any further updates as needed to the valuation of the LumiraDx loan.

EXPLANATORY NOTE

Appointment of Administrators; Sale of Point of Care Diagnostics Business to Roche

On December 29, 2023, LumiraDx Limited (the "Company" or "LumiraDx") announced that Andrew Johnson, Lisa Rickelton and Lindsay Hallam of FTI Consulting LLP have today been appointed as joint administrators (the "Administrators") of two of its subsidiaries, LumiraDx Group Limited and LumiraDx International Limited, which together hold substantially all of the assets of the LumiraDx group. The Administrators have not been appointed to any other subsidiaries of the Company.

Following their appointment earlier today, the Administrators have entered into a sale and purchase agreement with Roche Diagnostics Limited ("Roche") providing for Roche's acquisition of certain of the LumiraDx group companies (the "Point of Care Diagnostics Companies") engaged in the operation of LumiraDx group's point-of-care diagnostics platform business and certain related assets (the "Transaction"). The Administrators have not been appointed to any of the Point of Care Diagnostics Companies.

Pursuant to the Transaction, Roche is to acquire all of the Point of Care Diagnostics Companies for the sum of $295 million, subject to customary closing adjustments. The completion of the Transaction is subject to certain conditions, including antitrust and foreign direct investment approvals, and is expected to close once the antitrust and other regulatory approvals have been obtained and the conditions have otherwise been met. It is anticipated that all of the sale proceeds will be used to repay certain amounts outstanding under the Loan Agreement (as defined below), and that there will be no distribution to the Company or its shareholders from the sale proceeds of the Transaction.

BioPharma Credit Investments V (Master) LP and BPCR Limited Partnership (the "Senior Secured Lenders"), as senior secured lenders of the LumiraDx group, have agreed to provide up to $59.2 million in funding for the LumiraDx group until the completion of the Transaction to, among other things, support the ongoing operations of the Point of Care Diagnostics Companies. Under the terms of the Transaction, Roche has agreed to reimburse the Senior Secured Lenders for up to $55 million of funding provided by the Senior Secured Lenders to the Point of Care Diagnostics Companies in the period to completion of the Transaction to support the ongoing ordinary course operations of the Point of Care Diagnostics Companies.

The appointment of the Administrators and sale to Roche represent the culmination of LumiraDx's previously announced strategic review process led by Goldman Sachs & Co. LLC and follows extensive efforts to find a buyer for the business. The completion of the sale to Roche will allow the continued operation of the point-of-care diagnostics business under new strategic ownership.

Expiry of Waiver Period; Petition to Wind-up

In accordance with the terms of that certain Loan Agreement, dated March 23, 2021 (as amended from time to time, the "Loan Agreement"), by and among LumiraDx Investment Limited, one of the Company's subsidiaries as the borrower, the Senior Secured Lenders, BioPharma Credit plc, as the collateral agent, and the other credit parties named therein, the Waiver Period (as defined in the Loan Agreement) has expired as of today, December 29, 2023. As a result of the steps taken to appoint the Administrators to LumiraDx Group Limited and LumiraDx International Ltd, events of default under the Loan Agreement have occurred and the principal amount outstanding under the Loan Agreement of $361.8 million, together with all accrued interest and all other amounts payable under the Loan Agreement, is now immediately due and payable (collectively, the "Outstanding Amount"). LumiraDx Investment Limited is unable to pay the Outstanding Amount.

The collateral agent (on behalf of the Senior Secured Lenders) has also issued a demand against the Company, as guarantor, for payment of the Outstanding Amount. As the Company does not have funds to pay the Outstanding Amount, it is anticipated that the collateral agent (on behalf of the Senior Secured Lenders) will in due course present a petition for the winding up of the Company with a view to having a liquidator appointed over it. The Company expects that there will be no assets available for distribution to its shareholders or the unsecured creditors of the LumiraDx group. No demand has been made or enforcement action taken against any other LumiraDx group companies.

Delisting of Company Securities

In light of the events described above, the Company intends to withdraw its appeal of the determination by the Listing Qualifications Department of The Nasdaq Stock Market LLC ("Nasdaq") to delist the Company's common shares from The Nasdaq Global Market. As a result, the Company anticipates that Nasdaq will cancel the hearing that is currently scheduled for January 18, 2024, suspend trading of the Company's securities and file a Form 25-NSE with the U.S. Securities and Exchange Commission ("SEC"), which will remove the Company's securities from listing and registration on Nasdaq.

This report on Form 6-K shall be deemed to be incorporated by reference into the Company's registration statements on Form S-8 (File No. 333-259874, File No. 333-264611 and File No. 333-271538), and the registration statements on Form F-3 (File No. 333-264609 and File No. 333-271624), and to be a part thereof from the date on which this report is filed, to the extent not superseded by documents or reports subsequently furnished."

[tmas] 07/12/2023 17:31

Biopharma Credit BPCR.
Are these guys running LumiraDx LMDX ??
Don't seem right.

[davebowler] 01/12/2023 16:02

hTTps://citywire.com/investment-trust-insider/news/bb-biotech-s-koller-this-crash-will-look-like-a-blip/a2431763?re=115093&ea=252901&utm_source=BulkEmail_Investment+Trust+Insider+Daily&utm_medium=BulkEmail_Investment+Trust+Insider+Daily&utm_campaign=BulkEmail_Investment+Trust+Insider+Daily

[jonwig] 01/12/2023 07:07

Immunogen prepayment:



Will receive $14.5m in fees.

[smidge21] 29/11/2023 08:09

DIVIDEND DECLARATION

3.75 CENT PER SHARE DISTRIBUTION INCLUDES 2.0 CENT SPECIAL DECLARATION

BioPharma Credit PLC (LSE: BPCR), the specialist life sciences debt investor, is pleased to declare an interim dividend in respect of the financial period ended 30 September 2023 of $0.0375 per ordinary share, payable on 5 January 2024 to ordinary shareholders on the register as at 8 December 2023. The ex-dividend date will be 7 December 2023.

The Company has chosen to designate the entire amount of this interim dividend as an interest distribution. Shareholders in receipt of such a dividend will be treated for UK tax purposes as though they have received a payment of interest. This will result in a reduction in the corporation tax payable by the Company.

The $0.0375 dividend comprises an ordinary dividend of $0.0175 and a special dividend of $0.0200 The Company is currently paying and continues to target a 7 cent annual dividend per ordinary share.

[gsbmba99] 24/11/2023 12:57

Per the most recent fact sheet ( "At 31 October 2023, the Company has revised the valuation of its investment in LumiraDx to reflect revised assumptions based on new information available to the Investment Manager. As per the table, the revised valuation of the LumiraDx investment is $123.4 million as of 31 October 2023 vs $172.9 million as of 30 September 2023. Please note the valuation of the Company’s investment in LumiraDx is subject to further change, depending on any further revised assumptions made by and/or information available to the Investment Manager."

[williamcooper104] 13/11/2023 18:08

To put into context - ARCC - a US BDC - has a market cap about 2x the entire listed London market for private credit

[williamcooper104] 13/11/2023 16:41

US BDCs have mostly had a great year Double digit yields, no big discounts to NAV

[davebowler] 13/11/2023 16:39

htTPs://citywire.com/new-model-adviser/news/david-stevenson-private-credit-is-hot-but-uk-listed-debt-funds-are-not/a2430301?re=114609&refea=252901

[williamcooper104] 05/11/2023 13:22

Looks like the management team leaving to go get money to buy it out of C11

[davebowler] 05/11/2023 11:45

hTTps://citywire.com/investment-trust-insider/news/biopharma-problems-mount-as-directors-resign-from-lumiradx/a2429472?re=114469&refea=252901

[jonwig] 02/11/2023 08:02

Another update, resignations at LumiraDx:

[davebowler] 01/11/2023 11:13

Liberum -Routine passing of continuation resolution very likely
Analyst: Shonil Chande

Mkt Cap £885m | Share price $0.83 | Prem/(disc) -20.2% | Div yield 8.5%

Event

BioPharma Credit has traded at an average discount above 10% over the 12-month rolling period to 31 October 2023, triggering a continuation resolution. A general meeting must therefore be convened, proposing a continuation resolution by 31 December 2023.

Liberum view

We expect the continuation resolution to pass without incident. This is a vehicle with a strong track record (five-year annualised NAV total return of 9.4%), high distribution capacity, and the potential to significantly return capital via repurchases and deliver another special dividend. BPCR’s current inability to support its shares through repurchases is a result of having two observer seats on the LumiraDx board. C.98% of the portfolio has exposure to floating rate loans and the $0.07 dividend is comfortably covered, excluding the LumiraDx loan. BPCR is thought to have over $220m in cash following Reata Pharmaceuticals̵7; acquisition in August.

BPCR last repurchased shares on 11 July 2023. Given the size of the current discount and BPCR’s capacity to invest a significant portion of its market cap into repurchases, there is potential for material NAV accretion. BPCR repurchased over $50m in shares last year, at a buyback yield of c.3.9%. Within Alternatives, this was the second-largest figure in absolute terms after Balanced Commercial Property (£58m). BPCR’s repurchases represented 16.1% of overall volumes last year (4.8% YTD) and 78% of volumes on the days it was active in the market.

Once the LumiraDx loan is cleared up, we would expect a significant increase in share buybacks and the company is also expected to pay a special dividend this year, which it has done each year since 2017.

[jonwig] 01/11/2023 07:09

Continuation resolution triggered:



Board recommends acceptance.

[davebowler] 27/9/2023 12:07

Assuming Lumirax is c. 15% of the assets then the current discount of c.20% to NAV in effect guards against the worst.
Net asset value per Ordinary Share, including current
period revenue, was 102.39 cents -price today is 84 cents