Amicus, Blackstone enter $430M strategic financing partnership

Amicus Therapeutics (FOLD) has entered into a definitive agreement for a $430 million financing collaboration with funds managed by Blackstone (BX). As part of the collaboration, Blackstone Life Sciences and Blackstone Credit have agreed to provide Amicus with a $400 million senior secured term loan facilitating a refinancing of existing debt and a $30 million strategic investment in Amicus’s common stock. The financing collaboration allows Amicus to grow revenues and move toward profitability while delivering on its mission for patients and its vision of being one of the leading biotechnology companies focused on rare diseases. Key features of this transaction include: $400M senior secured term loan facility; interest rate at adjusted Term SOFR plus 6.25%, subject to a 2.50% floor on Term SOFR; $30M investment in Amicus common stock; Requires interest-only payments until late 2026 and matures in October 2029; The full amount of the loan and equity purchase will be available and fully drawn at the initial funding; The proceeds will be used to refinance Amicus’s existing debt and fund ongoing operations. Subject to completion of customary conditions, the loan is expected to be funded and the equity investment is expected to close on October 5, 2023.