Mithra gets private bridge loan as it seeks to monetize assets

Chicago, March 7 – Mithra Pharmaceuticals SA entered into a new secured bridge loan facility for €13.5 million to provide the company with a liquidity runway as it initiates a process to monetize its assets or execute a sale of its business, according to a press release.

In the credit agreement, there is an uncommitted accordion facility of a further €5 million.

The multi-draw bridge loan covers the potential monetization process through April 30.

The borrower under the facility is Estetra SRL with a guarantee from Mithra Pharmaceuticals.

The maturity date is 60 days from the first draw, or March 6 when the company drew the first €9 million.

The lenders under the facility consist of funds managed by Highbridge Capital Management, LLC and funds managed by Whitebox Advisors, LLC.

The lenders will enter into an intercreditor agreement with ING Belgium NV/SA and Belfius Bank NV/SA, the other existing secured creditors to Estetra SRL, who have agreed in principle to forebear and standstill with respect to any defaults under their agreements.

The facility does not bear interest; however, it provides for a forbearance fee of 2% on the amounts outstanding under Mithra’s existing senior secured convertible facility with the lenders and a 5% commitment fee on the committed amounts. Both fees will be paid in kind by compounding these amounts with the principal amount of the facility.

The facility also provides for an exit fee of 5% (or 10% in the absence of third-party guarantor consent) of any amounts paid, repaid or canceled under the facility and a make-whole fee equal to the amount necessary to ensure that the total return on investment of the lenders is equal to 20% (or 30% in the absence of third-party guarantor consent ) of the facility. The exit fee and make-whole fee are payable in cash upon any repayment, prepayment or cancellation of the facility.

Mithra is a Liege, Belgium-based biopharmaceutical company focused on women’s health.

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