BioPharma Credit, a newly incorporated investment trust, has raised gross cash proceeds of USD373,265,200 from a successful placing, offer and PL subscription following a book-building process.
The company has also received an additional subscription of USD50,000,000. No further additional subscriptions are expected.
Further to the announcement released on 20 March 2017, the company has decided to satisfy in full the demand received pursuant to the tender offers and will issue 338,612,160 shares totalling USD338,612,160.
Gross issue proceeds therefore total USD761,877,360 and the company will issue 761,877,360 shares. This exceeds the company’s initial target of USD300 million.
Application has been made for 761,877,360 shares to be admitted to the Official List of the Channel Islands Stock Exchange Authority and for trading on the Specialist Fund Segment of the London Stock Exchange. The company’s shares will trade under the ticker “BPCR”.
On initial admission, the company will admit shares issued in connection with the placing, the offer, the PL subscription and the BioPharma III tender offer to trading. The company expects to admit 526,747,200 shares to trading on initial admission. The BioPharma III Interest will be acquired in full on initial admission.
The company will then use the proceeds of the initial admission to complete the RPS Note transaction and issue shares in connection therewith which are expected to be admitted to trading on or before 8am on 30 March 2017. The company expects to admit the remaining 235,130,160 shares to trading on subsequent admission.
Jeremy Sillem, chairman of the company, says: "The strong support we have received from institutional investors, which has resulted in the issue exceeding our original target to raise USD300 million, demonstrates the attraction of the investment proposition BioPharma Credit offers the market. The board would like to thank those involved in the process and looks forward to supporting the management team as they execute on the strategy."
Pablo Legorreta, CEO of Royalty Pharma and co-founder of Pharmakon, says: "We are pleased by the strong response we have received from many existing Royalty Pharma Select and BioPharma III investors who are supporting the creation of BioPharma Credit PLC through the contribution of seed assets for shares and by making a significant additional cash investment in or initial public offering. They are joined by a broad group of new, high quality investors from UK and Europe.
“The continued growth and evolution of the global life sciences industry has fuelled the demand for flexible credit and debt expertise now and in the future. Building upon our track record, we believe we are best placed to capitalise on this opportunity and are excited to give a broader audience of investors access to the benefits of our strong network and in-depth knowledge of the sector as we begin life as a publicly listed company. We welcome our new shareholders and look forward to working with them and delivering on our investment strategy.”
