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PTC Therapeutics gets committed facility of $450 million; further financing contemplated
By Wendy Van Sickle
Columbus, Ohio, Oct. 27 – PTC Therapeutics Inc. said it entered into a strategic financing collaboration with a $500 million initial commitment with funds managed by Blackstone, according to a news release.
The transaction comprises $300 million of seven-year senior secured debt that accrues interest at SOFR plus 725 basis points; a $150 million delayed-draw loan to be funded within 18 months; $500 million in potential credit facility or other investment capital to support business development opportunities; and a $50 million purchase of PTC common stock.
The seven-year term loan may be prepaid subject to a make-whole amount for the first three years and a premium of 3% in year four, 2% in year five and 1% in year six.
Wilmington Trust, NA is the administrative agent, according to an 8-K filing with the Securities and Exchange Commission.
The customized senior secured term loan investment by Blackstone is collateralized by the medications Translarna, Emflaza, Upstaza, sepiapterin and vatiquinone.
“This strategic financing will support the acceleration of PTC’s robust and diversified pipeline, business development opportunities and general corporate purposes,” Emily Hill, chief financial officer of PTC Therapeutics, said in the release.
The credit agreement requires PTC to have consolidated liquidity of at least $100 million as of the last day of each fiscal quarter, which shall be increased to $200 million upon the company consummating acquisitions meeting certain consideration thresholds.
South Plainfield, N.J.-based PTC is a biopharmaceutical company. Its lead product is Translama (ataluren) for the treatment of muscular dystrophy and cystic fibrosis and is in phase 3 clinical trials.
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