By Devika Patel
Knoxville, Tenn., Sept. 10 – Sorrento Therapeutics Inc. reported that its subsidiary Scilex Pharmaceuticals Inc. settled a private placement of $224 million senior secured notes due 2026 for $140 million on Sept. 10, according to an 8-K filed with the Securities and Exchange Commission. Morgan Stanley & Co. LLC was the agent for the deal, which priced Sept. 7.
The principal amount will be increased by $28 million on Feb. 15, 2022 if actual cumulative net sales of ZTlido do not equal or exceed 95% of a predetermined target sales threshold from the issue date of the notes through Dec. 31, 2021.
If actual cumulative net sales of ZTlido do not equal or exceed 80% of a predetermined target sales threshold from Oct. 1, 2022 through Sept. 30, 2023, the principal amount shall also be increased on Nov. 15, 2023.
Proceeds will be used for working capital and general corporate purposes.
Sorrento Therapeutics is a San Diego-based clinical stage biopharmaceutical company focused on malignant cancers.
| Issuer: | Scilex Pharmaceuticals Inc.
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| Issue: | Senior secured notes
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| Amount: | $224 million, may be increased by $28 million
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| Maturity: | Aug. 15, 2026
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| Price: | $140 million
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| Call: | Par call
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| Agent: | Morgan Stanley & Co. LLC
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| Pricing date: | Sept. 7
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| Settlement date: | Sept. 10
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| Distribution: | Private placement
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