Amryt Completes $125 Million Non-Dilutive Debt Refinancing

Rhea-AI Summary

Amryt has successfully secured $125 million in senior credit facilities from the Credit Group of Ares Management to strengthen its financial position. This refinancing will significantly reduce Amryt's interest expense and extend the maturity of its debt until 2027. The new facilities include an $85 million term loan with a reduced interest rate of SOFR+6.75% and a $40 million revolving credit facility. The refinancing is expected to provide strategic flexibility and support Amryt's global growth in rare diseases.

Positive

• Secured $125 million in senior credit facilities, enhancing liquidity.
• Reduced interest costs from 13.00% to a blended rate of SOFR+5.87%.
• Extended debt maturity to February 2027, improving financial stability.
• Facilitated potential shareholder-approved share repurchase programs.

Negative

• None.

Amryt Completes $125 Million Non-Dilutive Debt Refinancing

New Facilities Will Significantly Reduce Amryt’s Interest Expense and Cost of Capital and
Extend Term Debt Maturity Through 2027

Further Strengthens Amryt’s Balance Sheet and Provides Incremental Strategic Flexibility
and Support for Continued Global Growth

DUBLIN, Ireland, and Boston MA, February 22, 2022— Amryt (Nasdaq: AMYT), a global, commercial-stage biopharmaceutical company dedicated to acquiring, developing and commercializing novel treatments for rare diseases, announces that it has secured $125 million of senior credit facilities from funds managed by the Credit Group of Ares Management Corporation (“Ares”). Amryt will use a portion of the proceeds to refinance its previous secured term debt facility, which has an outstanding balance of $94 million, an interest rate of 13.00% and a maturity date of September 2024. The new facilities will generate significant annual interest cost savings as well as provide for important strategic flexibility as Amryt looks to continue to grow its global rare disease presence.

Key features of the new facilities include:

• Total new facilities of $125 million, consisting of:
  • $85 million Term Loan Facility with interest rate of SOFR+6.75%, subject to a 0.90% SOFR floor
  • $40 million Revolving Credit Facility with $20 million drawn at close and interest rate of SOFR+4.00%, subject to a 0.90% SOFR floor
• Quarterly blended cash interest rate of SOFR+5.87% (assuming fully drawn), subject to a 0.90% SOFR floor, substantially lower than Amryt’s current secured term debt facility at 13.00% interest
• Requires interest-only payments until facility matures in February 2027
• There are no warrants or any equity conversion features associated with the new facilities
• The proceeds will be used to refinance existing debt, for general corporate and product development purposes; and potentially for shareholder approved share repurchase programs
  

Dr. Joe Wiley, CEO of Amryt Pharma, commented: “We are pleased to announce the refinancing of our term debt facilities with Ares. The refinancing further strengthens our balance sheet, significantly reduces our interest costs and extends the maturity profile of our term debt facilities through 2027.”

Dr. Douglas Dieter, Partner in the Ares Management Credit Group, added: “Amryt Pharma focuses on important therapies for patients and their families who seek treatments to manage rare diseases. Ares is pleased to provide Amryt with a capital solution that supports the company in this next phase of its commercial growth as it continues to grow its global rare disease capabilities and market presence.”

The new loan was funded on February 18, 2022. Canaccord Genuity LLC and Moelis & Company LLC acted as joint financial advisors to Amryt on this transaction. Gibson, Dunn & Crutcher LLP acted as legal advisor to Amryt.

About Amryt
Amryt is a global commercial-stage biopharmaceutical company focused on acquiring, developing and commercializing innovative treatments to help improve the lives of patients with rare and orphan diseases. Amryt comprises a strong and growing portfolio of commercial and development assets.

Amryt’s commercial business comprises three orphan disease products – metreleptin (Myalept®/ Myalepta®); oral octreotide (Mycapssa®); and lomitapide (Juxtapid®/ Lojuxta®).

Myalept®/Myalepta® (metreleptin) is approved in the US (under the trade name Myalept®) as an adjunct to diet as replacement therapy to treat the complications of leptin deficiency in patients with congenital or acquired generalized lipodystrophy (GL) and in the EU (under the trade name Myalepta®) as an adjunct to diet for the treatment of leptin deficiency in patients with congenital or acquired GL in adults and children two years of age and above and familial or acquired partial lipodystrophy (PL) in adults and children 12 years of age and above for whom standard treatments have failed to achieve adequate metabolic control. For additional information, please follow this link.

Mycapssa® (octreotide capsules) is approved in the US for long-term maintenance therapy in acromegaly patients who have responded to and tolerated treatment with octreotide or lanreotide. Mycapssa® is the first and only oral somatostatin analog approved by the FDA. Mycapssa® has also been submitted to the EMA and is not yet approved in Europe. For additional information, please follow this link.

Juxtapid®/Lojuxta® (lomitapide) is approved as an adjunct to a low-fat diet and other lipid-lowering medicinal products for adults with the rare cholesterol disorder, Homozygous Familial Hypercholesterolaemia ("HoFH") in the US, Canada, Colombia, Argentina and Japan (under the trade name Juxtapid®) and in the EU, Israel, Saudi Arabia and Brazil (under the trade name Lojuxta®). For additional information, please follow this link.

Amryt's lead development candidate, Oleogel-S10 (Filsuvez®) is a potential treatment for the cutaneous manifestations of Junctional and Dystrophic Epidermolysis Bullosa (“EB”), a rare and distressing genetic skin disorder affecting young children and adults for which there is currently no approved treatment. Filsuvez® has been selected as the brand name for Oleogel-S10. The product does not currently have regulatory approval to treat EB and is under review by the FDA and EMA.

Amryt’s pre-clinical gene therapy candidate, AP103, offers a potential treatment for patients with Dystrophic EB, and the polymer-based delivery platform has the potential to be developed for the treatment of other genetic disorders.

Amryt also intends to develop oral medications that are currently only available as injectable therapies through its Transient Permeability Enhancer (TPE^®) technology platform. For more information on Amryt, including products, please visit www.amrytpharma.com.

About Ares
Ares Management Corporation (NYSE: ARES) is a leading global alternative investment manager offering clients complementary primary and secondary investment solutions across the credit, private equity, real estate and infrastructure asset classes. We seek to provide flexible capital to support businesses and create value for our stakeholders and within our communities. By collaborating across our investment groups, we aim to generate consistent and attractive investment returns throughout market cycles. As of December 31, 2021, Ares Management Corporation's global platform had approximately $306 billion of assets under management, with approximately 2,100 employees operating across North America, Europe, Asia Pacific and the Middle East.

Forward-Looking Statements
This announcement may contain forward-looking statements and the words "expect", "anticipate", "intends", "plan", "estimate", "aim", "forecast", "project" and similar expressions (or their negative) identify certain of these forward-looking statements. The forward-looking statements in this announcement are based on numerous assumptions and Amryt's present and future business strategies and the environment in which Amryt expects to operate in the future. Forward-looking statements involve inherent known and unknown risks, uncertainties and contingencies because they relate to events and depend on circumstances that may or may not occur in the future and may cause the actual results, performance or achievements to be materially different from those expressed or implied by such forward-looking statements. These statements are not guarantees of future performance or the ability to identify and consummate investments. Many of these risks and uncertainties relate to factors that are beyond Amryt's ability to control or estimate precisely, such as future market conditions, the course of the COVID-19 pandemic, currency fluctuations, the behaviour of other market participants, the outcome of clinical trials, the actions of regulators and other factors such as Amryt's ability to obtain financing, changes in the political, social and regulatory framework in which Amryt operates or in economic, technological or consumer trends or conditions. Past performance should not be taken as an indication or guarantee of future results, and no representation or warranty, express or implied, is made regarding future performance. No person is under any obligation to update or keep current the information contained in this announcement or to provide the recipient of it with access to any additional relevant information that may arise in connection with it. Such forward-looking statements reflect the Company’s current beliefs and assumptions and are based on information currently available to management.

Contacts

Joe Wiley, CEO / Rory Nealon, CFO/COO, +353 (1) 518 0200, ir@amrytpharma.com

Tim McCarthy, LifeSci Advisors, LLC, +1 (212) 915 2564, tim@lifesciadvisors.com

FAQ

What is the significance of Amryt's $125 million refinancing on February 22, 2022?

Amryt's $125 million refinancing significantly reduces its interest expense and extends debt maturity through 2027, promoting financial stability.

What are the new interest rates for Amryt's credit facilities secured in February 2022?

The new facilities feature an $85 million term loan at SOFR+6.75% and a revolving credit facility at SOFR+4.00%.

How will the refinancing affect Amryt's balance sheet?

The refinancing strengthens Amryt's balance sheet by reducing interest costs and extending debt maturity.

When do the new debt facilities for Amryt mature?

The new debt facilities for Amryt mature in February 2027.

What will the proceeds from Amryt's refinancing be used for?

Proceeds will refinance existing debt, support general corporate purposes, and potentially fund share repurchase programs.