Fortress Biotech Reduces Total Debt and Enters into New $35 Million Term Loan with Oaktree with Maturity in 2027
Fortress Biotech (Nasdaq: FBIO) has entered into a new loan agreement with Oaktree Capital Management for up to $50 million, receiving an initial $35 million tranche. This arrangement allows Fortress to repay its prior $50 million loan due in August 2025 and extends the maturity to July 2027. The new loan has a 30-month interest-only period with an interest rate of 3-month SOFR plus 7.625%.
The company expects this agreement to provide financial flexibility for long-term expansion, asset acquisition, and execution of its commercial business and late-stage pipeline. Fortress anticipates up to three regulatory approvals on NDAs and BLAs in the next 12 months and potentially a fourth BLA filing by 2025. This strategic partnership with Oaktree supports Fortress' ability to develop innovative assets addressing areas of high unmet medical need.
Fortress Biotech (Nasdaq: FBIO) ha stipulato un nuovo accordo di prestito con Oaktree Capital Management per un massimo di 50 milioni di dollari, ricevendo un primo tranche di 35 milioni di dollari. Questo accordo consente a Fortress di rimborsare il precedente prestito di 50 milioni di dollari in scadenza ad agosto 2025 e di estendere la scadenza a luglio 2027. Il nuovo prestito prevede un periodo di soli interessi di 30 mesi con un tasso d'interesse pari al SOFR a 3 mesi più il 7,625%.
L'azienda prevede che questo accordo fornisca flessibilità finanziaria per l'espansione a lungo termine, l'acquisizione di asset e l'esecuzione della sua attività commerciale e del pipeline in fase avanzata. Fortress anticipa fino a tre approvazioni regolatorie su NDA e BLA nei prossimi 12 mesi e potenzialmente un quarto deposito di BLA entro il 2025. Questa partnership strategica con Oaktree supporta la capacità di Fortress di sviluppare asset innovativi che affrontano aree di elevato bisogno medico non soddisfatto.
Fortress Biotech (Nasdaq: FBIO) ha firmado un nuevo acuerdo de préstamo con Oaktree Capital Management por hasta 50 millones de dólares, recibiendo un primer tramo de 35 millones de dólares. Este acuerdo permite a Fortress reembolsar su préstamo anterior de 50 millones de dólares que vence en agosto de 2025 y extiende el vencimiento a julio de 2027. El nuevo préstamo tiene un período de solo intereses de 30 meses con una tasa de interés de SOFR a 3 meses más 7,625%.
La empresa espera que este acuerdo brinde flexibilidad financiera para la expansión a largo plazo, la adquisición de activos y la ejecución de su negocio comercial y su cartera en fase avanzada. Fortress anticipa hasta tres aprobaciones regulatorias en NDA y BLA en los próximos 12 meses y potencialmente una cuarta presentación de BLA para 2025. Esta asociación estratégica con Oaktree respalda la capacidad de Fortress para desarrollar activos innovadores que aborden áreas de alta necesidad médica no satisfecha.
포트리스 바이오텍(Fortress Biotech, Nasdaq: FBIO)은 오크트리 캐피털 매니지먼트(Oaktree Capital Management)와 최대 5천만 달러의 새로운 대출 계약을 체결하고, 최초로 3천5백만 달러를 수령했습니다. 이번 계약은 포트리스가 2025년 8월 만기인 5천만 달러의 이전 대출을 상환할 수 있도록 하고, 만기를 2027년 7월로 연장합니다. 새로운 대출은 30개월의 이자만 납부하는 기간을 가지고 있으며, 이자율은 3개월 SOFR에 7.625%를 추가한 것입니다.
회사는 이번 계약이 장기 확장, 자산 인수 및 상업 비즈니스와 후기 단계 파이프라인의 실행을 위한 재정적 유연성을 제공할 것으로 기대하고 있습니다. 포트리스는 향후 12개월 내에 NDA 및 BLA에 대한 규제 승인 최대 3건을 예상하며, 2025년까지 네 번째 BLA 제출 가능성도 있습니다. 오크트리와의 이 전략적 파트너십은 포트리스가 높은 unmet medical need에 대응하는 혁신적인 자산을 개발할 수 있는 능력을 지원합니다.
Fortress Biotech (Nasdaq: FBIO) a conclu un nouvel accord de prêt avec Oaktree Capital Management pour un montant pouvant atteindre 50 millions de dollars, recevant une première tranche de 35 millions de dollars. Cet arrangement permet à Fortress de rembourser son précédent prêt de 50 millions de dollars arrivant à échéance en août 2025 et prolonge l'échéance jusqu'en juillet 2027. Le nouveau prêt a une période de 30 mois avec uniquement des intérêts à un taux d'intérêt de SOFR à 3 mois plus 7,625%.
L'entreprise s'attend à ce que cet accord offre une flexibilité financière pour l'expansion à long terme, l'acquisition d'actifs et l'exécution de ses activités commerciales et de sa pipeline avancée. Fortress prévoit jusqu'à trois approbations réglementaires pour des NDA et des BLA au cours des 12 prochains mois et potentiellement un quatrième dépôt de BLA d'ici 2025. Ce partenariat stratégique avec Oaktree soutient la capacité de Fortress à développer des actifs innovants répondant à des domaines de besoins médicaux non satisfaits.
Fortress Biotech (Nasdaq: FBIO) hat eine neue Kreditvereinbarung mit Oaktree Capital Management über bis zu 50 Millionen Dollar abgeschlossen und eine erste Tranche von 35 Millionen Dollar erhalten. Diese Vereinbarung ermöglicht es Fortress, das vorherige Darlehen von 50 Millionen Dollar, das im August 2025 fällig ist, zurückzuzahlen und die Laufzeit bis Juli 2027 zu verlängern. Das neue Darlehen hat eine 30-monatige Zinszahlungsphase mit einem Zinssatz von 3-Monats-SOFR plus 7,625%.
Das Unternehmen erwartet, dass dieses Abkommen finanzielle Flexibilität für die langfristige Expansion, den Erwerb von Vermögenswerten und die Durchführung seines Geschäftsbetriebs sowie der Pipeline in der späten Phase bietet. Fortress rechnet mit bis zu drei behördlichen Genehmigungen für NDAs und BLAs in den nächsten 12 Monaten und möglicherweise einer vierten BLA-Einreichung bis 2025. Diese strategische Partnerschaft mit Oaktree unterstützt die Fähigkeit von Fortress, innovative Vermögenswerte zu entwickeln, die Bereiche mit hohem ungedecktem medizinischem Bedarf adressieren.
- New $50 million loan agreement with Oaktree Capital Management, extending debt maturity to July 2027
- Repayment of prior $50 million loan due in August 2025, improving capital flexibility
- Potential for up to three regulatory approvals on NDAs and BLAs in the next 12 months
- Possible fourth BLA filing as early as 2025
- 30-month interest-only period on the new loan
- Increased interest rate on new loan (3-month SOFR plus 7.625%) compared to previous loan
- Additional fees and prepayment terms associated with the new loan
Insights
Fortress Biotech's new loan agreement with Oaktree Capital Management marks a significant financial restructuring that warrants attention. The $35 million initial tranche, with potential for an additional $15 million, effectively replaces the previous $50 million term loan, extending the maturity date from 2025 to 2027. This restructuring provides Fortress with improved capital flexibility and long-term financial stability.
The terms of the new loan are noteworthy: a 30-month interest-only period and an interest rate of 3-month SOFR plus 7.625% (with a 2.50% floor and 5.75% cap). While this rate structure may seem complex, it essentially provides Fortress with a degree of interest rate protection in a volatile market environment.
From an investor's perspective, this refinancing is generally positive. It reduces near-term debt obligations and aligns the company's capital structure with its pipeline milestones. The potential for three regulatory approvals in the next 12 months and a fourth BLA filing by 2025 suggests that Fortress is positioning itself for a period of significant growth and potential revenue generation.
However, investors should note that while this deal provides breathing room, it also increases the company's total potential debt to
Fortress Biotech's refinancing move comes at a critical juncture for the company, with several potential regulatory milestones on the horizon. The extension of their debt maturity to 2027 aligns well with the expected timeline for their late-stage pipeline developments, particularly the potential for three regulatory approvals in the next year.
This financial maneuver demonstrates confidence in Fortress's pipeline and business model. The company's focus on acquiring and advancing assets positions it uniquely in the biotech space, allowing for diversification of risk across multiple potential revenue streams: product revenue, equity holdings and royalties.
The involvement of Oaktree, a significant player in life sciences lending, lends credibility to Fortress's strategy. Oaktree's willingness to continue and expand their relationship with Fortress suggests a positive outlook on the company's prospects.
However, investors should be aware that the success of this strategy hinges heavily on the outcomes of the pending regulatory decisions. Any setbacks in these approvals could significantly impact Fortress's ability to capitalize on this financial restructuring. The biotech sector is notoriously volatile and while Fortress's diversified approach mitigates some risk, the company still faces substantial challenges in bringing multiple products to market simultaneously.
Overall, this refinancing provides Fortress with the runway it needs to potentially transform from a development-stage company to one with multiple approved products, a critical transition in the biotech industry.
Extends maturity of long-term debt as Fortress‘ late-stage pipeline continues to advance and may generate up to three regulatory approvals on NDAs and BLAs in the next 12 months and potentially a fourth BLA filing as early as 2025
MIAMI, July 25, 2024 (GLOBE NEWSWIRE) -- Fortress Biotech, Inc. (Nasdaq: FBIO) (“Fortress”, or the “Company”), an innovative biopharmaceutical company focused on acquiring and advancing assets to enhance long-term value for shareholders through product revenue, equity holdings and dividend and royalty revenue, today announced that it has entered into a new loan agreement (the “Agreement”) for up to
Lindsay A. Rosenwald, M.D., Fortress’ Chairman, President and Chief Executive Officer, said, “Oaktree has been a great partner to us and we are very pleased to continue to collaborate with them. This arrangement allows us to fully repay our prior
Aman Kumar, Co-Portfolio Manager for Oaktree’s Life Sciences Lending platform, commented, “We are delighted to continue our strategic partnership with Fortress, supporting their ability to source, acquire and develop innovative assets with strong proof-of-concept in humans and the potential to address areas of high unmet medical need. Fortress has several near-term value creating opportunities across its extensive pipeline, along with a unique and highly scalable business model. We are impressed by the Company’s progress and look forward to supporting them in their next phase of growth.”
The new loan has a 30-month interest-only period with a maturity of July 25, 2027, and bears interest at an annual rate equal to the 3-month Secured Overnight Financing Rate (SOFR) plus
Oaktree is a leading provider of debt and royalty financing for the global life sciences industry. Since 2020, funds managed by Oaktree have committed nearly
Troutman Pepper Hamilton Sanders LLP served as legal counsel to Fortress. Sullivan & Cromwell LLP served as legal counsel to Oaktree.
Further information with respect to the loan agreement will be set forth in a Form 8-K to be filed by Fortress with the Securities and Exchange Commission (“SEC”).
About Fortress Biotech
Fortress Biotech, Inc. (“Fortress”) is an innovative biopharmaceutical company focused on acquiring and advancing assets to enhance long-term value for shareholders through product revenue, equity holdings and dividend and royalty revenue. The company has seven marketed prescription pharmaceutical products and over 20 programs in development at Fortress, at its majority-owned and majority-controlled partners and subsidiaries and at partners and subsidiaries it founded and in which it holds significant minority ownership positions. Fortress’ portfolio is being commercialized and developed for various therapeutic areas including oncology, dermatology, and rare diseases. Fortress’ model is focused on leveraging its significant biopharmaceutical industry expertise and network to further expand and advance the company’s portfolio of product opportunities. Fortress has established partnerships with some of the world’s leading academic research institutions and biopharmaceutical companies to maximize each opportunity to its full potential, including AstraZeneca, City of Hope, Fred Hutchinson Cancer Center, Nationwide Children’s Hospital and Sentynl. For more information, visit www.fortressbiotech.com.
About Oaktree
Oaktree is a leader among global investment managers specializing in alternative investments, with
Forward-Looking Statements
Statements in this press release that are not descriptions of historical facts are “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934, as amended. The words “anticipates,” “believes,” “can,” “continue,” “could,” “estimates,” “expects,” “intends,” “may,” “might,” “plans,” “potential,” “predicts,” “should,” or “will” or the negative of these terms or other comparable terminology are generally intended to identify forward-looking statements. These forward-looking statements are based on management’s current expectations and are subject to risks and uncertainties that could negatively affect our business, operating results, financial condition and stock price. Factors that could cause actual results to differ materially from those currently anticipated include risks relating to: our growth strategy, financing and strategic agreements and relationships; the ongoing UTRF litigation and our indemnification of Caelum in connection therewith; our need for substantial additional funds and uncertainties relating to financings; our ability to identify, acquire, close and integrate product candidates successfully and on a timely basis; our ability to attract, integrate and retain key personnel; the early stage of products under development; the results of research and development activities; uncertainties relating to preclinical and clinical testing; our ability to obtain regulatory approval for products under development; our ability to successfully commercialize products for which we receive regulatory approval; our ability to secure and maintain third-party manufacturing, marketing and distribution of our and our partner companies’ products and product candidates; government regulation; patent and intellectual property matters; competition; as well as other risks described in our SEC filings. We expressly disclaim any obligation or undertaking to release publicly any updates or revisions to any forward-looking statements contained herein to reflect any change in our expectations or any changes in events, conditions or circumstances on which any such statement is based, except as may be required by law, and we claim the protection of the safe harbor for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995. The information contained herein is intended to be reviewed in its totality, and any stipulations, conditions or provisos that apply to a given piece of information in one part of this press release should be read as applying mutatis mutandis to every other instance of such information appearing herein.
Company Contact:
Jaclyn Jaffe
Fortress Biotech, Inc.
(781) 652-4500
ir@fortressbiotech.com
Media Relations Contact:
Tony Plohoros
6 Degrees
(908) 591-2839
tplohoros@6degreespr.com
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