Fortress Biotech Reduces Total Debt and Enters into New $35 Million Term Loan with Oaktree with Maturity in 2027
July 25 2024 - 8:30AM
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 $50 million with funds
managed by Oaktree Capital Management, L.P. (“Oaktree”). The
Company will receive an initial tranche of $35 million and is
eligible to draw an additional $15 million at Oaktree’s discretion
to support future business development activities. In connection
with the new loan agreement, the Company repaid its prior $50
million term loan with Oaktree.
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 $50 million principal balance that was due in August 2025
and improves our capital flexibility with a maturity date on the
new loan of July 2027. We expect the new loan agreement to provide
financial flexibility for long-term expansion as we source and
acquire assets, as well as execute on our existing commercial
business and late-stage pipeline. Across our portfolio, we could
receive up to three regulatory approvals on NDAs and BLAs in the
next 12 months and potentially a fourth BLA filing as early as
2025.”
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 7.625% (subject to a 2.50% SOFR floor and a 5.75% SOFR cap),
payable quarterly, with certain additional fees and prepayment
terms.
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 $4.0
billion across 35 investments for companies across the
healthcare spectrum.
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 OaktreeOaktree is a
leader among global investment managers specializing in alternative
investments, with $192 billion in assets under management as of
March 31, 2024. The firm emphasizes a value-oriented and
risk-controlled approach to investments in credit, private equity,
real assets and listed equities. The firm has over 1,200 employees
and offices in 23 cities worldwide. For additional information,
please visit Oaktree’s website at
http://www.oaktreecapital.com/.
Forward-Looking
StatementsStatements 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 JaffeFortress Biotech,
Inc.(781) 652-4500ir@fortressbiotech.com
Media Relations Contact:Tony Plohoros6
Degrees(908) 591-2839tplohoros@6degreespr.com
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