Oncobiologics sells $10 million in two tranches; MEP Werke gets €30 million green loan

By Devika Patel

Knoxville, Tenn., Jan. 10 – On Tuesday, only two private placement deals were announced. Cranbury, N.J., biopharmaceutical company Oncobiologics, Inc. said it completed a two-tranche $10 million private placement of senior secured promissory notes, and Munich energy provider MEP Werke GmbH sold a €30 million 20-year fixed-rate green loan to Delta Lloyd Asset Management.

The Oncobiologics notes were sold in tranches, with $8.35 million sold in the first tranche on Dec. 22 and $1.65 million sold in the second and final tranche on Tuesday. The notes are due on Dec. 22, 2017 and accrue interest at 5% per year.

Oncobiologics investors also received warrants for 2.3 million shares, which are each exercisable at $3.00 for five years. The strike price reflects a 5.26% premium to Monday’s closing share price of $2.85.

A portion of the proceeds from the sale of the notes will be used to pay off Oncobiologics’ existing senior secured bank loans, and the remainder will be used for working capital purposes.

The MEP Werke loan is secured by a pool of 20-year residential solar lease receivables.

NIBC Bank Deutscheland AG structured the program. The loan has been structured to meet the Climate Bonds Standards and is certified by the Climate Bonds Initiative.

NIBC Bank Deutscheland granted MEP Werke a second senior loan warehouse facility to enable the further growth of the portfolio, after which a second fixed-rate financing product can be issued.

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