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SELECTED TRANSACTION DETAILS
Owl Rock and Oaktree Provide $175MM Senior Secured Term Loan to ADC Therapeutics
Wednesday, August 17, 2022

Lenders/Participants Owl Rock [Lender]
Oaktree Capital Management L.P. [Lender]
Structure Senior Secured Term Loan
Amount $175.000 Million
Borrower(s) ADC Therapeutics SA
Description A new $175 million senior secured term loan with an upfront tranche of $120 million received upon closing. Pursuant to the loan and guaranty agreement, the Company completed an initial drawdown of $120 million on August 15, 2022. This amount was used by the Company to fund the cash consideration as part of the settlement of Deerfield’s senior secured convertible notes. Up to two additional tranches in the amount of $27.5 million each can be drawn by the Company upon meeting certain conditions within 18 months. The term loan matures on August 15, 2029 and accrues interest at an annual rate of secured overall financing rate (SOFR) plus 7.50% or a base rate plus 6.50% for the first five years of the term loans and at an annual rate of SOFR plus 9.25% or a base rate plus 8.25% thereafter. In addition, the Company issued to the lenders under the term loan warrants to purchase an aggregate number of common shares equal to $4.375 million divided by the volume weighted-average price of the common shares for the ten trading days prior to their issuance and the ten trading days on and after their issuance, which warrants are exercisable for ten years from their issuance.
Industry Biotechnology
Related Tags Oaktree Capital Management, Owl Rock