Novocure gets $150 million five-year term loan from BioPharma Credit

By Marisa Wong

Morgantown, W.Va., Feb. 8 – Novocure Ltd. entered into a loan and security agreement on Feb. 7 for a $150 million five-year term loan from BioPharma Credit plc, according to an 8-K filing with the Securities and Exchange Commission.

The term loan, which was drawn in full at closing, bears interest at 9% per year.

The company is using the proceeds to repay in full its obligations under an existing term loan and to fund general corporate purposes. On Wednesday the company repaid in full and terminated its term loan dated Jan. 7, 2015 with Biopharma Secured Investments III Holdings Cayman LP.

The company may prepay the new term loan in full at any time. The facility also contains some mandatory prepayment provisions. In each case, any prepayment is subject to a premium or make-whole payment. The prepayment fee is 2% for the first three years, stepping down to 1% for year four.

All obligations under the term loan are guaranteed by the company’s subsidiaries. In addition, the obligations are secured by a first-priority security interest in substantially all of the property and assets of the company and some of the guarantors.

The facility contains a number of restrictive covenants but does not include any financial maintenance covenants.

Novocure is an oncology company that is developing a therapy called Tumor Treating Fields (TTFields). The company is based in Portsmouth, N.H., and incorporated in St. Helier, Jersey.

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