FOLD - Amicus Therapeutics and Blackstone Enter into $430 Million Strategic Financing Collaboration | Benzinga
Refinancing of Current $400M Debt at Lower Cost and Improved Amortization Schedule
Blackstone to also Purchase $30M of Amicus Common Stock
PRINCETON, N.J., Oct. 02, 2023 (GLOBE NEWSWIRE) -- Amicus Therapeutics (NASDAQ:FOLD), a global, patient-dedicated biotechnology company focused on discovering, developing, and delivering novel medicines for rare diseases, today announced that it has entered into a definitive agreement for a $430 million financing collaboration with funds managed by Blackstone (NYSE:BX). As part of the collaboration, Blackstone Life Sciences and Blackstone Credit have agreed to provide Amicus with a $400 million senior secured term loan facilitating a refinancing of existing debt and a $30 million strategic investment in Amicus's common stock. The financing collaboration allows Amicus to grow revenues and move toward profitability while delivering on its mission for patients and its vision of being one of the leading biotechnology companies focused on rare diseases.
Bradley Campbell, President and Chief Executive Officer of Amicus Therapeutics, stated: "This new financing with Blackstone strengthens our balance sheet and financial profile by reducing the interest rate versus our current debt, pushing out the amortization schedule and extending the amortization period. This strategic investment demonstrates Blackstone's commitment to Amicus' future and belief in the strong growth potential of Galafold and Pombiliti™ + Opfolda™ as we continue on our mission to develop medicines for people living with rare diseases."
Key features of this transaction include:
- $400M senior secured term loan facility; interest rate at adjusted Term SOFR plus 6.25%, subject to a 2.50% floor on Term SOFR
- $30M investment in Amicus common stock
- Requires interest-only payments until late 2026 and matures in October ...