Sarepta Therapeutics Announces $250 Million of Non-Dilutive Senior Secured Loan Financing
December 13 2019 - 8:30AM
Sarepta Therapeutics, Inc. (NASDAQ:SRPT), the leader in precision
genetic medicine for rare diseases, announced today that it has
entered into an agreement with funds managed by Pharmakon Advisors,
LP, that provides Sarepta with up to $500 million of borrowing
capacity in two tranches. The first $250 million (Tranche A) is
available shortly after closing in December 2019, with an
additional $250 million (Tranche B) available at Sarepta’s option
by Dec. 31, 2020, subject to certain conditions. Both tranches are
available at a rate of 8.5% annually, payable quarterly. The
facility will mature 48 months from the Tranche A closing date.
Additional information on the agreement will be set forth in a Form
8-K to be filed by the Company with the Securities and
Exchange Commission.
Pharmakon Advisors, LP, is the investment manager of the
BioPharma Credit funds including BioPharma Credit Investments V LP
and BioPharma Credit PLC (LON:BPCR), the only listed investor
specialized in life sciences debt.
About Sarepta
TherapeuticsSarepta is at the forefront of
precision genetic medicine, having built an impressive and
competitive position in Duchenne muscular dystrophy (DMD) and more
recently in gene therapies for Limb-girdle muscular dystrophy
diseases (LGMD), Charcot-Marie-Tooth (CMT), MPS IIIA and other
CNS-related disorders, totaling over 20 therapies in various stages
of development. The Company’s programs and research focus span
several therapeutic modalities, including RNA, gene therapy and
gene editing. Sarepta is fueled by an audacious but important
mission: to profoundly improve and extend the lives of patients
with rare genetic-based diseases. For more information, please
visit www.sarepta.com.
Forward-Looking StatementThis
press release contains "forward-looking statements." Any statements
contained in this press release that are not statements of
historical fact may be deemed to be forward-looking statements.
Words such as "believes," "anticipates," "plans," "expects,"
"will," "intends," "potential," "possible" and similar expressions
are intended to identify forward-looking statements. These
forward-looking statements include statements regarding Sarepta’s
ability to borrow funds under the agreement with Pharmakon
Advisors, L.P., and the timing and terms of the borrowing; and
Sarepta’s mission to profoundly improve and extend the lives of
patients with rare genetic-based diseases.
These forward-looking statements involve risks
and uncertainties, many of which are beyond Sarepta's control.
Known risk factors include, among others, market conditions,
Sarepta’s market capitalization, any refusal by Pharmakon Advisors,
L.P. to fund and other Company factors or circumstances that could
negatively impact Sarepta’s ability to satisfy its obligations or
borrow under the terms of the agreement with Pharmakon Advisors,
L.P. There can be no assurance that Sarepta will be able to comply
with the terms of the agreement with Pharmakon Advisors, L.P.,
which may result in an event of default under such agreement that
could give Pharmakon Advisors, L.P. the right to require immediate
payment of any amounts borrowed under such agreement or to exercise
its rights with respect to the assets of Sarepta that are
collateral or have been pledged by Sarepta as security or other
assets of Sarepta; Sarepta may not be able to execute on its
business plans, including meeting its expected or planned
regulatory milestones and timelines, research and clinical
development plans, and bringing its product candidates to market,
for various reasons, some of which may be outside of Sarepta’s
control, including possible limitations of company financial and
other resources, manufacturing limitations that may not be
anticipated or resolved for in a timely manner, and regulatory,
court or agency decisions, such as decisions by the United States
Patent and Trademark Office with respect to patents that cover
Sarepta’s product candidates; and those risks identified under the
heading “Risk Factors” in Sarepta’s most recent Annual Report on
Form 10-K for the year ended December 31, 2018 and most recent
Quarterly Report on Form 10-Q filed with the Securities and
Exchange Commission (SEC) as well as other SEC filings made by the
Company which you are encouraged to review.
Any of the foregoing risks could materially and
adversely affect the Company’s business, results of operations and
the trading price of Sarepta’s common stock. We caution investors
not to place considerable reliance on the forward-looking
statements contained in this press release. Sarepta does not
undertake any obligation to publicly update its forward-looking
statements based on events or circumstances after the date
hereof.
Internet Posting of
Information
We routinely post information that may be
important to investors in the 'For Investors' section of our
website at www.sarepta.com. We encourage investors and
potential investors to consult our website regularly for important
information about us.
Source: Sarepta Therapeutics, Inc.
Sarepta Therapeutics, Inc.
Investors: Ian Estepan, 617-274-4052iestepan@sarepta.com
Media:Tracy Sorrentino, 617-301-8566tsorrentino@sarepta.com
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