Business
Fortress Biotech Reduces Total Debt and Enters into New $35 Million Term Loan with Oaktree with Maturity in 2027
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
About this update from Fortress Biotech, Inc.
[{"type":"text","content":"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\nMIAMI, 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 $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...