BioPharma Credit PLC STATEMENT RE TESARO (7996N)

TIDMBPCR

RNS Number : 7996N

BioPharma Credit PLC

22 January 2019

22 January 2019

BIOPHARMA CREDIT PLC

(THE "COMPANY")

STATEMENT RE TESARO

Pharmakon Advisors, the Investment Manager of BioPharma Credit PLC (the "Company") notes the announcement released today by GlaxoSmithKline plc ("GSK") regarding the completion of its acquisition of TESARO Inc ("TESARO"). As a result of this transaction, TESARO will repay its $500.0 million loan together with a make-whole and prepayment premium on 23 January 2019. The Company will receive a payment of $370.0 million on its $322.0 million share of the loan as per the table below:

 
 (values in $ 
  millions) 
                       Tranche   Tranche 
                             A         B    Total 
 Principal Amount       $222.0    $100.0   $322.0 
 Accrued interest         $1.5      $0.7     $2.2 
 Make-whole Amount       $21.1     $14.9    $36.0 
 Prepayment Premium       $6.7      $3.0     $9.7 
--------------------  --------  --------  ------- 
 Payoff Amount          $251.3    $118.6   $369.9 
 

The $45.7 million to be received by the Company as make-whole and prepayment represents 14.2% of the $322.0 million investment, which is the equivalent of what the Company would have received had the loan remained outstanding for another fifteen months, approximately.

Following TESARO's repayment, the Company will have a cash balance of approximately $760.0 million which will be used to fund future investments, pre-agreed investment obligations and upcoming dividends. Pharmakon Advisors, the Company's investment manager, expects that the Company will be able to redeploy its total available cash reserves within the next twelve months.

The Company continues to note a highly supportive environment for its investment strategy and looks forward to updating shareholders on the further deployment of funds.

Enquiries

BioPharma Credit plc

via Link Company Matters Limited

Company Secretary

[phone]

Buchanan

[phone] / [e-mail]

David Rydell / Mark Court / Jamie Hooper / Henry Wilson

Notes to Editors

BioPharma Credit PLC is London's only listed specialist investor in debt from the life sciences industry and joined the LSE on 27 March 2017. The Company seeks to provide long-term shareholder returns, principally in the form of sustainable income distributions from exposure to the life sciences industry. The Company seeks to achieve this objective primarily through investments in debt assets secured by royalties or other cash flows derived from the sales of approved life sciences products.

This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact [e-mail] or visit www.rns.com.

END

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January 22, 2019 11:00 ET (16:00 GMT)