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MidCap Financial Provides $35MM Term Loan to Aptevo Therapeutics

August 08, 2016, 07:44 AM
Filed Under: Medical

Aptevo Therapeutics Inc, a biotechnology company focused on developing novel oncology and hematology therapeutics, announced today that it has closed on a $35 million term loan agreement previously announced on August 1, 2016.

“The $35 million term loan agreement further strengthens our balance sheet and provides additional operational flexibility at an attractive cost of capital,” stated Marvin White, President and Chief Executive Officer. Combined with the $65 million in total cash contribution from Emergent Biosolutions, and the cash flow from our commercial products, Aptevo is well capitalized to pursue our corporate objectives and advance our novel pipeline of oncology and hematology therapeutics.”

The MidCap financing provides Aptevo with up to $35 million of potential borrowing capacity, which is available to the company in two tranches of $20 million and $15 million, at the company’s discretion, through January 2021. The agreement bears interest at a rate of LIBOR plus 7.60% per annum.

The first tranche, in the amount of $20 million, was funded on August 4, 2016 effective with closing of the term loan agreement. Aptevo will be able to draw the second tranche at its discretion after meeting the following financial covenants: achieving net commercial product revenue of $40 million on a trailing 12 month basis and receipt of a final cash installment of $20 million from Emergent BioSolutions to be paid within 6-12 months of the effective date of the separation, August 1st, 2016.

Aptevo Therapeutics Inc. is a biotechnology company focused on novel oncology and hematology therapeutics to meaningfully improve patients’ lives. Our core technology is the ADAPTIR™ (modular protein technology) platform. Aptevo has four commercial products in the areas of hematology and infectious diseases, as well as various investigational stage product candidates in immuno-oncology.

MidCap Financial is a middle-market focused, specialty finance firm that provides senior debt solutions to businesses across all industries. The firm’s years of experience, strong balance sheet, and flexibility make it a lender of choice for companies across all stages of growth and complexity. MidCap Financial’s debt solutions focus in five areas: General and healthcare asset-based working capital loans collateralized by third-party accounts receivable and other assets; Leveraged loans to companies backed by private equity sponsors; Life sciences loans to VC-backed and public pharmaceutical, biotech, and medical device companies; Real estate loans on all types of commercial properties, medical office buildings, various types of senior housing and skilled nursing properties; and Lender finance term loans or revolvers provided across the consumer and commercial finance sectors.

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