Biopharma Credit Share Discussion Threads

[williamcooper104] 20/9/2021 20:20

You can do an on line W1BEN form It gets your US WHT down to zero for a SIPP (but most UK brokers charge you 1 percent for covering your dividends into sterling) For anything held personally, corporately or in an ISA the reduced WHT rate is 15 percent - if you hold personally/corporately then this 15 percent is offset against your UK tax so it's only a timing cashflow issue But it's always a bit annoying to have to suffer it in an ISA There's usually no WHT for any payments deemed to be interest - so they can be held effeicnrlu in an ISA

[williamcooper104] 20/9/2021 20:16

HL let me put it in my ISA There is (IIRC) a rule about foreign currencies not being eligible for ISAs; but most brokers just interrupt that as being ok so long as they charge an exorbitant fee for converting dollar dividends into sterling

[jonwig] 20/9/2021 20:13

I suspected that, but my broker (II) tells me not - it's their house rule, I guess. I haven't made a big issue of it.

[tiltonboy] 20/9/2021 20:10

BPCR can be held in an ISA

[jonwig] 20/9/2021 20:06

roger - it's not a US listing, though its currency is USD. It's moving from the LSE specialist fund segment to the LSE main market.

So there's no US withholding tax, but its dividends are all or part payments of interest, rather than share dividends, so the taxation is different. My broker says they can't be held in an ISA (as quoted in USD) but maybe that's just them saying it.

[rogerramjett] 20/9/2021 19:50

Interested in investing here but wondered with this being a US listing are the dividend subject to withholding tax. I lost out on tax within my ISA when investing in CAC40 listed TotalEnergies and understand that with US traded stocks you can complete a form which reduces tax on dividends. Just not sure if it's applicable to BPCR as its an investment trust. If tax is with held what is this amount please ?

Reading the previous post it mentions listing on LSE. Is this going ahead or in the pipeline? I assume this will eliminate any withholding tax concerns which ultimately reduce the yield.

Thanks in advance.

[davebowler] 15/9/2021 09:32

Liberum;
Mkt Cap £970m | Share price $0.98 | Prem/(disc) -2.8% | Div yield 7.5%

Event

BioPharma Credit's NAV per share at 30 June 2021 was 99.8 cents (previously reported), representing a NAV total return of 3.2% over H1. We estimate look-through recurring EPS of 3.7 cents (1.05x dividend cover) and a capital loss of 0.4 cents.

The portfolio generated additional liquidity totalling $124m, including pre-payments. This included $97m from payments from the Sebela loan, including a final prepayment premium totalling $1.5m. The final payment was made on 30 June 2021, with BPCR realising an IRR of 11.2% on the investment.

During H1, BPCR and BioPharma-V2 agreed a $300m senior secured term loan with LumiraDx, a UK based diagnostics company. LumiraDx is now the second largest loan in the portfolio behind Sarepta ($350m). At the period-end, BPCR's cash balance was $211.3m, representing 15.5% of NAV.

Post-period end corporate updates for the BPCR included:

Proposed main market listing - an application has been submitted to trade on the premium segment of the LSE.
Continuation resolution brought forward - this has been brought forward by a year from the required five year mark to 30 September 2021 and will be held at the forthcoming AGM.
RCF refinanced - the committed RCF with JPMorgan Chase has been reduced from $200m to $50m, while allowing for an increase up to $200m. The margin payable under the RCF has reduced from 4.00% to 2.75%.
View

BPCR has continued to generate a high level of income, despite the impact of cash drag, with credit quality remained materially unaffected by the pandemic. We believe the current 2.8% discount and 7.5% dividend yield are an attractive entry point for a high quality portfolio that has delivered consistent returns since launching in 2017. The recent corporate announcements should positively support sentiment.

Life sciences companies will require substantial capital over the coming years, as the number of number of products undergoing clinical trials continues to grow. The manager continues to report a strong pipeline and the focus will be on deploying resources. The loans are typically structured to provide protection against cash drag from repayments in the form of prepayment fees and make-whole penalties.

BPCR's origination pipeline is likely to be further supported by the growing need for acquisition financing. Global life sciences M&A volume over H1 totalled $111bn, a 516% increase on H120.

[speedsgh] 15/9/2021 07:42

Half-yearly Report -

[speedsgh] 20/8/2021 22:12

Net Asset Value(s) -

As at the 31 July 2021 the unaudited net asset value per Ordinary Share, including current period revenue, was 100.38 cents. The Company's factsheet will be located on the Company's website, hxxp://bpcruk.com

[31/7/21: 100.38 cents per share]
[30/6/21: 99.80 cents per share]
[31/5/21: 100.93 cents per share]
[30/4/21: 100.27 cents per share]
[31/3/21: 99.85 cents per share]
[28/2/21: 101.40 cents per share]
[31/1/21: 100.84 cents per share]
[31/12/20: 100.37 cents per share]
[30/11/20: 99.91 cents per share]
[31/10/20: 101.13 cents per share]
[30/9/20: 101.00 cents per share]

[speedsgh] 11/8/2021 16:11

M&G has reduced from just under 10% to just under 5%...

[speedsgh] 22/7/2021 07:43

Net Asset Value(s) and Monthly Factsheet -

As at the 30 June 2021 the unaudited net asset value per Ordinary Share, including current period revenue, was 99.80 cents. The Company's factsheet will be located on the Company's website, hxxp://bpcruk.com.

[30/6/21: 99.80 cents per share]
[31/5/21: 100.93 cents per share]
[30/4/21: 100.27 cents per share]
[31/3/21: 99.85 cents per share]
[28/2/21: 101.40 cents per share]
[31/1/21: 100.84 cents per share]
[31/12/20: 100.37 cents per share]
[30/11/20: 99.91 cents per share]
[31/10/20: 101.13 cents per share]
[30/9/20: 101.00 cents per share]

[speedsgh] 24/5/2021 18:28

Net Asset Value(s) and Monthly Factsheet -

As at the 30 April 2021 the unaudited net asset value per Ordinary Share, including current period revenue, was 100.27 cents. The Company's factsheet will be located on the Company's website, hxxp://bpcruk.com.

[30/4/21: 100.27 cents per share]
[31/3/21: 99.85 cents per share]
[28/2/21: 101.40 cents per share]
[31/1/21: 100.84 cents per share]
[31/12/20: 100.37 cents per share]
[30/11/20: 99.91 cents per share]
[31/10/20: 101.13 cents per share]
[30/9/20: 101.00 cents per share]

[speedsgh] 23/4/2021 16:50

Net Asset Value(s) and Monthly Factsheet -

As at the 31 March 2021 the unaudited net asset value per Ordinary Share, including current period revenue, was 99.85 cents. The Company's factsheet will be located on the Company's website, hxxp://bpcruk.com.

[28/2/21: 101.40 cents per share]
[31/1/21: 100.84 cents per share]
[31/12/20: 100.37 cents per share]
[30/11/20: 99.91 cents per share]
[31/10/20: 101.13 cents per share]
[30/9/20: 101.00 cents per share]

[pob69] 31/3/2021 12:03

As always a fascinating drill-down by David Stevenson

[davebowler] 26/3/2021 09:22

Stifel;
This week BioPharma announced a new investment in UK borrower LumiraDx Investment Limited. The manager expects this “should get them close” to fully covering the BioPharma dividend but there is still c.$98m of cash (or 7% of NAV) still to be deployed. The fund has taken warrants in LumiraDx (details not disclosed) and the interesting aspect is that LumiraDX is exploring an IPO in the US. Finally, while the majority of borrowers historically have been in the US the fund is agnostic to region. However, the pool of potential borrowers is larger in the US and so it’s likely that the US focus will continue. (Analyst: Sachin Saggar)

[davebowler] 24/3/2021 10:22

Liberum;
$150m loan investment

Mkt Cap £970m | Prem/(disc) -2.4% | Div yield 7.5%

Event

Biopharma Credit will invest $150m in a new loan with LumiraDX. The overall size of the facility is $300m with the remaining $150m provided by BioPharma V. The loan is for a term of three years with a fixed interest rate of 8%. The lenders will also receive fees of 4% (2.5% entry and 1.5% exit) and warrants as part of the transaction.

LumiraDX is a point of care diagnostic company seeking to bring lab-comparable performance to point of care in minutes. To date, it has developed and launched four diagnostic tests for use with its platform including antigen test and antibody tests for Covid-19. The antigen tests are commercially available in the US and Europe. Existing customers for the antigen test include the NHS and CVS Pharmacy. The company has also started to roll out of a programme to supply Instruments and a significant number of Covid-19 antigen test strips to Africa as part of a collaboration with the Bill & Melinda Gates Foundation.

Liberum view

The new loan will represent 11% of NAV and will deploy the majority of the outstanding cash balance of $248m. The company received $425m of prepayments in H2 2020, which has led to an element of cash drag on returns in recent months. Prepayment fees and make-whole penalties have compensated for the cash drag and the new investment should add approximately 1 cent per share to recurring earnings (including annualised fees). This would ensure the dividend is broadly fully covered with the likelihood of additional improvements as further capital is deployed.

[jonwig] 16/3/2021 07:28

Very satisfactory:



"No material impact on the credit quality of any loan as a result of the global disruption caused by the Covid-19 pandemic".

And they are throwing off dividends which is what we want.
(Strictly speaking they are interest distributions and taxable outside an ISA. At 20% I think.)

[speedsgh] 15/3/2021 13:09

"BioPharma Credit PLC (LSE: BPCR), the specialist life sciences debt investor, will announce its audited Full Year Results for the period ending 31 December 2020 on Tuesday 16 March 2021."

[jonwig] 19/2/2021 16:47

GBP strength not helping?

[speedsgh] 19/2/2021 16:04

Net Asset Value(s) and Monthly Factsheet -

As at the 31 January 2021 the unaudited net asset value per Ordinary Share, including current period revenue, was 100.84 cents. The Company's factsheet will be located on the Company's website, hxxp://bpcruk.com.

[jonwig] 22/12/2020 11:34

True, but my broker (ii) lets me have a USD account, so I'm not too bothered. And gold is a useful hedge against weaker dollar.

[tiltonboy] 22/12/2020 11:28

Currency has been the issue

[speedsgh] 22/12/2020 10:19

"...but not a particularly excited one."

That's probably a good thing. When it comes to investments, boring suits me down to the ground.

[jonwig] 22/12/2020 07:04

speeds - thanks for keeping us up to date with this! I'm still a contented holder, but not a particularly excited one.