Oxford Biomedica agrees new four-year, $125m loan facility

(Sharecast News) - Oxford Biomedica announced on Friday that it has agreed a new four-year loan facility of up to $125m with Oaktree Capital Management, refinancing its existing debt and providing additional funding capacity to support future expansion. The London-listed firm said the new arrangement included $60m of immediate funding, of which $50m would be used to repay an earlier facility agreed with Oaktree in 2022.

It said the remaining funds would be used for general corporate purposes.

The facility included options for a further $25m drawdown subject to standard conditions, and up to an additional $40m linked to revenue milestones.

OXB said the terms of the loan were broadly in line with the previous facility.

It would be non-amortising, with repayment due in full at maturity in 2029, and secured against substantially all the assets of Oxford Biomedica and its subsidiaries.

Chief financial officer Dr Lucinda Crabtree said the refinancing "marks an important step in strengthening our financial agility as we continue to execute our growth strategy".

"Oaktree's continued support reflects their long-standing confidence in OXB's leading position in the CDMO viral vector market and enables us to remain focused on enhancing our capabilities, delivering on our strategic objectives and creating value for our clients and stakeholders."

Aman Kumar, co-portfolio manager for Oaktree's Life Sciences Lending platform, added that the company was "delighted" to extend its relationship with OXB through the debt refinancing.

"We look forward to continuing to support the company as it executes on its multi-vector, multi-site strategy."

At 1032 BST, shares in Oxford Biomedica were down 5.5% at 433.29p.

Reporting by Josh White for Sharecast.com.