31 October 2024

BIOPHARMA CREDIT PLC

(THE "COMPANY") 

NEW INVESTMENT OF US$35 MILLION

BioPharma Credit PLC (LSE: BPCR), the specialist life sciences debt investment trust, is pleased to announce a new investment in the form of an assignment of a US$35 million tranche in a US$200 million senior secured loan to Alphatec Holdings, Inc. ("ATEC"). BioPharma Credit Investments V (Master) LP ("BioPharma-V") was assigned an additional US$35 million tranche. The assignor, Braidwell Transaction Holdings LLC - Series I, will retain the remaining US$130 million.  

Based in the US, ATEC is a publicly traded medical device company with a current market capitalization of ~US$745 million (Ticker: ATEC - NASDAQ). ATEC's Organic Innovation Machine^TM is focused on developing new approaches that integrate seamlessly with its expanding Alpha InformatiX Platform to better inform surgery and more safely and reproducibly achieve the goals of spine surgery. ATEC's vision is to be the Standard Bearer in Spine. ATEC reported net sales of US$435 million for the first nine months of 2024.

The loan matures in January 2028 and bears interest at 3-month SOFR plus 5.75 per cent. per annum subject to a 3.00 per cent. SOFR floor. The Company also received a 1% fee on its US$35 million investment at the signing of the assignment agreement. The loan includes (i) a repayment premium of 3.00 per cent. of the principal amount of any such repayment during the first 12 months after the signing date, 2.00 per cent. of the principal amount of any such repayment during months 13 through 24 after the signing date, and 1.00 per cent. of the principal amount of any such repayment thereafter but prior to the maturity date, as well as (ii) an exit fee of 3.25 per cent. of the principal amount of any repayment or prepayment on such date of repayment or prepayment.

Pedro Gonzalez de Cosio, CEO of Pharmakon Advisors, LP, the Company's investment adviser said:

"ATEC's mission to improve spine care is fueling exceptional growth. We are excited to partner with the team in support of that important mission as the company continues to expand profitability and inflects to positive cash flow."

Enquiries

Burson Buchanan

Mark Court / Jamie Hooper / Henry Wilson / Samuel Adams

+44 (0) 20 7466 5000

biopharmacredit@buchanan.uk.com

Notes to Editors

BioPharma Credit PLC is London's only specialist debt investor to the life sciences industry and joined the LSE in March 2017. The Company seeks to provide long-term shareholder returns, principally in the form of sustainable income distributions from exposure to the life sciences industry. The Company seeks to achieve this objective primarily through investments in debt assets secured by royalties or other cash flows derived from the sales of approved life sciences products.