XOMAP - XOMA Raises up to $140 Million in Non-Dilutive Non-Recourse Financing from Funds Managed by Blue Owl Capital Backed by VABYSMO® Royalties | Benzinga
Low-cost financing capitalizes on XOMA's $14 million acquisition of VABYSMO® (faricimab) royalties in 2021
Proceeds expected to be used for stock repurchases and additional royalty and milestone acquisitions
Financing from Blue Owl extends XOMA's capabilities as a leading provider of capital to emerging biotech companies
EMERYVILLE, Calif., Dec. 19, 2023 (GLOBE NEWSWIRE) -- XOMA Corporation (NASDAQ:XOMA), the biotech royalty aggregator, today announced it entered into a non-dilutive, non-recourse, royalty-backed loan for up to $140 million of capital with certain funds managed by the credit platform of Blue Owl Capital Inc. (NYSE:OWL).
"The Blue Owl financing provides us with significant non-dilutive capital to drive shareholder value through stock repurchases and additional royalty and milestone acquisitions," stated Brad Sitko, Chief Investment Officer of XOMA. "This capital infusion comes at an opportune time given the existing state of the biotech funding market, providing us with an opportunity to accelerate the growth of our royalty and milestones portfolio, which currently consists of two marketed products, two programs in or near registration, five assets in Phase 3 development, and over 60 assets in earlier stages of development."
"Blue Owl's Life Science efforts are focused on credit, royalty, and equity investments in innovative healthcare and life sciences companies and products. We recognize the value embedded in XOMA's differentiated royalty and milestone aggregation business strategy. Our long-established relationship with XOMA's management team gives us confidence that they can continue building a balanced portfolio of current and future royalty-generating assets. This financing establishes a long-term partnership with XOMA, as we help broaden their access to capital for royalty and milestone monetization opportunities," said Sandip Agarwala, Managing Director at Blue Owl Capital.
Terms of the Agreement
XOMA has drawn down $130 million in principal from Blue Owl and has the option to draw another $10 million should the royalties received from VABYSMO® (faricimab) sales on or prior to March 15, 2026, exceed a predetermined amount. XOMA is obligated to make semi-annual interest payments at a fixed rate of 9.875% per year until the royalty-backed loan is repaid, at which time VABYSMO® royalty payments will revert back to XOMA. The loan is ...