Fortress Biotech Announces $ 60 Million Loan Agreement With
NEW YORK, Aug. 28, 2020 (GLOBE NEWSWIRE) – Fortress Biotech, Inc. (NASDAQ: FBIO) (“Fortress”), an innovative revenue-generating company focused on the acquisition, development and commercialization or monetization of products and Promising biopharmaceuticals profitable candidates, today announced that it has entered into a $ 60 million loan agreement with funds managed by Oaktree Capital Management, LP (“Oaktree”), a leading global investment firm ( “The Agreement”). The company expects the proceeds from the five-year loan to be used to refinance existing debt. The loan will mature in August 2025.
Lindsay A. Rosenwald, MD, Chairman, President and CEO of Fortress, said, “We are very pleased to complete this transaction with Oaktree. The proceeds of this investment will rapidly strengthen our short-term liquidity, reduce the maturity of our existing borrowing agreements and reduce our cash debt service costs. This agreement provides additional resources for Fortress to strengthen our business development and operations initiatives, as well as to strengthen our long-term growth strategy, which includes key objectives of providing meaningful treatment options to patients in need. and increase shareholder value.
Aman Kumar, Managing Director of Oaktree, said: “We are delighted to partner with Fortress to provide financial support so that they can refinance existing debt and focus on product acquisition, development and commercialization. and product candidates with high commercialized potential and in the development phase. We are extremely excited about the Fortress model and the value creation strategy. We believe Fortress is well positioned to provide key catalysts for value creation over the next several years. “
Cantor Fitzgerald & Co was financial advisor to Fortress and Sidley Austin, LLP was legal counsel to Fortress. Sullivan & Cromwell LLP served as legal counsel to Oaktree.
Further information regarding the term loan is set out in a Form 8-K filed by Fortress with the Securities and Exchange Commission (“SEC”) on August 28, 2020.
About Fortress Biotech
Fortress Biotech, Inc. (“Fortress”) is an innovative biopharmaceutical company that was recently ranked 10th in Deloitte’s 2019 Technology Fast 500 ™, an annual ranking of the fastest growing North American companies in the fields of technology, media, telecommunications and life sciences. and the energy technology sectors, based on the percentage growth in revenue for the year over a three-year period. Fortress is focused on the acquisition, development and commercialization of high potential commercialized pharmaceutical products and development stage product candidates. The company has five commercialized prescription pharmaceuticals and more than 25 programs in development at Fortress, its majority and majority-controlled partners and the partners it has founded and in which it has significant minority interests. These product candidates cover six major market areas, including oncology, rare diseases and gene therapy, which enable it to create shareholder value. Fortress advances its diverse pipeline with a streamlined operational structure that promotes efficient drug development. The Fortress model is driven by a world-class business development team who are focused on leveraging their significant expertise in the biopharmaceutical industry to further expand the Company’s portfolio of product opportunities. Fortress has partnered with some of the world’s leading academic research institutes and biopharmaceutical companies to maximize every opportunity to its full potential, including Alexion Pharmaceuticals, Inc., AstraZeneca, City of Hope, Fred Hutchinson Cancer Research Center, InvaGen Pharmaceuticals Inc. (a subsidiary of Cipla Limited), St. Jude Children’s Research Hospital and Nationwide Children’s Hospital. For more information visit www.fortressbiotech.com.
Oaktree is a leading global investment manager specializing in alternative investments, with $ 122 billion in assets under management as of June 30, 2020. The company emphasizes an opportunistic, value-driven and controlled approach risks in terms of investments in credit, private equity, real assets and listed shares. The company has more than 1,000 employees and offices in 19 cities around the world. For more information, please visit the Oaktree website at http://www.oaktreecapital.com/.
This press release may contain “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934, as amended. As used below and throughout this press release, the words “we”, “our” and “our” may refer to Fortress individually or with one or more partner companies, as the context requires. These statements include, but are not limited to, all statements relating to our growth strategy and product development programs and all other statements that are not historical facts. Forward-looking statements are based on management’s current expectations and are subject to risks and uncertainties that could adversely affect our business, results of operations, financial condition and the price of our shares. Factors that could cause actual results to differ materially from those currently expected include: risks related to our growth strategy; our ability to secure, execute and maintain funding and strategic agreements and relationships; risks linked to the results of research and development activities; uncertainties related to preclinical and clinical trials; risks associated with the timing of the start and end of clinical trials; our dependence on third party suppliers; the risks associated with the COVID-19 epidemic and its potential impact on the ability of our employees and consultants to complete work in a timely manner and on our ability to obtain additional financing on favorable terms or not at all; our ability to attract, integrate and retain key personnel; the early stage of products under development; our need for substantial additional funds; government regulations; patent and intellectual property issues; competition; as well as other risks described in our filings with the SEC. We expressly disclaim any obligation or commitment to publicly release any update or revision to any forward-looking statement contained herein to reflect any change in our expectations or any change in the events, conditions or circumstances upon which such statement is based, except to the extent that it may be required by law. The information contained in this document is intended to be examined in its entirety, and any stipulations, conditions or reservations that apply to any information given in any part of this press release should be read as applicable. mutatis mutandis to any other instance of such information appearing here.
Jaclyn Jaffe and William Begien
Fortress Biotech, Inc.
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