Business
Seres Therapeutics Announces $250 Million Debt Financing with Oaktree
– Company to receive proceeds of $110 million upon closing of the agreement – – Financing to support commercial launch of VOWST™ and fund pipeline
About this update from Seres Therapeutics, Inc.
[{"type":"text","content":"\n– Company to receive proceeds of $110 million upon closing of the agreement –\n\n\n– Financing to support commercial launch of VOWST™ and fund pipeline development –\n\n\n CAMBRIDGE, Mass.--(BUSINESS WIRE)--\nSeres Therapeutics, Inc. (Nasdaq: MCRB), a leading microbiome therapeutics company, today announced that it has entered into a new $250 million senior secured debt facility (“Term Loan Facility”) provided by funds managed by Oaktree Capital Management, L.P. (“Oaktree”). The Company drew the first tranche of $110 million at closing, with three additional tranches available. These additional tranches include $90 million that will be available in two tranches of $45 million each based upon the achievement of certain applicable VOWST sales targets, and an additional $50 million will be available to the Company at Oaktree’s discretion to support potential future business development activities.\n\n\nOf the $110 million advanced by Oaktree at closing, approximately $53 million retires outstanding debt, and after deducting fees and expenses, the net proceeds to the Company are approximately $50 million. The Term Loan Facility carries an interest rate equal to the three-month secured overnight financing rate (“SOFR”) plus 7.875%, with the interest rate capped at 12.875% per annum. The Term Loan Facility is expected to mature six years from funding and carries an initial interest only period for the first three years, which may be extended to six years based upon the achievement of certain VOWST sales targets.\n\n\n“This flexible debt offering from Oaktree provides Seres with support for the upcoming commercial launch of VOWST, the first orally administered microbiota-based therapeutic to prevent recurrence of C. difficile Infection (CDI) in adults following antibacterial treatment for recurrent CDI (rCDI), as well as for the advancement of Seres’ additional microbiome therapeutic candidates, including SER-155. Oaktree is one of the top capital providers for innovative biopharma companies, and we look forward to working closely together,” said David Arkowitz, Chief Financial Officer at Seres.\n\n\n“With the approval of VOWST, Seres has firmly established itself as a leader in the exciting microbiome therapeutics field. We see a tremendous opportunity for VOWST and Seres’ multiple innovative pipeline programs to fill significant un...