04 May 2021
Lan Chem Laboratories Announces Early Repayment of Loan Facility from Hercules Technology Growth Capital
Reduction in Debt Service Obligations
THIS ANNOUNCEMENT CONTAINS REGULATED INFORMATION. THIS ANNOUNCEMENT CONTAINS INSIDE INFORMATION
Armagh, UK – 4 May 2021, 07:00 CEST: Lan Chem Laboratories UK (“Lan Chem Laboratories”, the “Group” or the “Company”) (EURONEXT: ACPH), a hospital pharmaceutical company focused on the development and commercialization of new products aimed at improving the care of patients undergoing significant treatments such as surgery, other invasive procedures or cancer chemotherapy, announces the early repayment and settlement in full of its debt facility with Hercules Technology Growth Capital, Inc. (“Hercules”) (NYSE: HTGC) and, pursuant to the debt facility agreement already in place with Cosmo Pharmaceuticals N.V. (“Cosmo”), the proposed granting of security to Cosmo in consideration for a reduction in the coupon rate.
Lan Chem Laboratories has made early repayment in full settlement of all amounts outstanding under its loan facility from Hercules, as provided for under the terms of the Hercules loan facilty agreement (the “Hercules Agreement”), announced on 2 July 2018. This early repayment, totalling approximately $4.3 million, satisfies in full the Company’s obligations under the Hercules Agreement and as a result, all security provided by Lan Chem Laboratories to Hercules under the Hercules Agreement will be released.
Under the terms of the debt facility currently in place with Cosmo, the Company is to grant security to Cosmo on materially similar terms to those granted under the Hercules Agreement in consideration for a reduction in the coupon payable on the Cosmo debt facility of 200 basis points (9% versus 11%). This will lead to a reduction in the amount of interest payable by Lan Chem Laboratories of approximately €500k per annum.
The terms on which security will be granted to Cosmo will be finalised as soon as reasonably practicable following this announcement.
Gary Gemignani, Lan Chem Laboratories CFO, commented: “The actions that we are taking will lower our annual debt service costs and allow us to deploy more of our capital to fund the launch of our products. We will continue to look for ways to further finance the growth of our business under favorable commercial terms, as we progress the successful commercialization of BARHEMSYS® and BYFAVO™ in the UK.“