A Dutch listed company Pharming Group N.V. has completed the replacement of its recently announced $100 million bridge finance with OrbiMed Advisors with a $100 million permanent facility agreement with OrbiMed Advisors.
The bridge finance was used to redeem the Amortizing Convertible Bonds due 2017/2018, and to refinance the company’s senior debt facility with Silicon Valley Bank and Kreos Capital, together with the associated prepayment fees and the legal and other costs of the transaction. The loan, initially structured as a bridge facility, has been replaced by a full loan agreement with a maturity date of July 2021.
Dr Sijmen de Vries, CEO of Pharming, said the terms were excellent for the company, and that it has a good partner in OrbiMed.
He said: “This new refinance enabled us to remove from the market the likelihood of issue of a substantial part of our authorized share capital (124 million shares) that was tied to the Amortizing Convertible Bonds facility. With a conversion price of €0.289, these Bonds might otherwise have been converted into shares at a significant discount to the current market price.”
Good day for stakeholders
De Vries said that the net effect on the company’s financial statements is also very positive. He pointed out that the company will not be required to make repayments over the next 12 months of almost €3 million per month in cash (or in shares at a discount) on the Amortizing Convertible Bonds, nor to make repayments of almost €1 million per month on the senior debt from December this year until September of next year.
“This allows us to invest our cash into promoting Ruconest and developing our pipeline and facilities, thereby enhancing growth opportunities. This is, therefore, another good day for all our stakeholders,” said de Vries.