Axovant places $55 million floating-rate debt in form of a term loan

By Devika Patel

Knoxville, Tenn., Feb. 3 – The week went out with a whisper rather than a bang as only one new private placement offering was announced: Hamilton, Bermuda-based clinical-stage biopharmaceutical company Axovant Sciences Ltd. sold $55 million of floating-rate debt to agent and investor Hercules Capital, Inc. on Feb. 2.

The debt will be issued in a private placement as a term loan, which matures on March 1, 2021 and bears interest at the greater of 10.55% and the Wall Street Journal Prime Rate plus 68 basis points.

The notes may be prepaid at any time with a premium, which will be 3% if the prepayment occurs within the first 18 months after closing; 2% if the prepayment occurs after 18 months but before 36 months following closing; and 1% if the prepayment occurs after 36 months.

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