Coherus BioSciences gets $75 million term loan at Libor plus 700 bps

By Wendy Van Sickle

Columbus, Ohio, Jan. 11 – Coherus BioSciences, Inc. entered on Jan. 7 into a credit agreement providing for a six-year $75 million term loan facility with affiliates of Healthcare Royalty Partners as lenders, according to an 8-K filing with the Securities and Exchange Commission.

Borrowings bear interest at Libor plus 700 basis points, with a stepdown to 675 bps if the consolidated net sales for Udenyca, the company’s pegfilgrastim biosimilar, for the fiscal year ending Dec. 31 exceed $250 million.

Principal payments must be paid in equal quarterly installments beginning on the four-year anniversary of the closing date or on the three-year anniversary of closing if the consolidated net sales of Udenyca are less than $375 million in the fiscal year ending Dec. 31, 2021. The balance will be due at closing.

Optional or required prepayments by the company will be required to pay a prepayment premium, and an exit fee of 400 bps will also apply.

Coherus paid the lenders of closing fee of $1,125,000.

Proceeds are to be used to refinance debt, support the commercial launch of Udenyca and for general corporate purposes.

The clinical biologics platform company is based in Redwood City, Calif.

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