Kindred Biosciences, a biopharmaceutical company focused on pets, has secured a $50 million debt facility from Solar Capital Partners LLC. Cantor Fitzgerald & Co acted as sole lead arranger and financial adviser to KindredBio on this transaction.
SAN FRANCISCO, Oct. 2, 2019 /PRNewswire/ — Kindred Biosciences, Inc. (Nasdaq: KIN), a commercial-stage biopharmaceutical company focused on saving and improving the lives of pets, today announced the closing of a $50 million senior secured debt facility with investment affiliates managed by Solar Capital Partners, LLC.
“We are pleased to have further strengthened our balance sheet and extended our operating cash runway with this non-dilutive financing. The strong credit market and high demand among lenders enabled us to achieve attractive terms on this facility. This gives us the potential to fund the current operating plan at least through the end of 2021, by which time we expect approval and launch of multiple additional products with substantial revenue potential. Assuming typical refinancing, we expect to pay the principal of the loan after we achieve positive cash flow,” said Richard Chin, Chief Executive Officer of KindredBio. “We continue to make substantial progress on our deep pipeline, with six positive pilot efficacy studies and three positive pivotal studies in a row. We look forward to a number of important catalysts through year-end as we execute on our capital-efficient business model.”
The non-dilutive financing agreement provides KindredBio with up to $50 million of borrowing capacity available in three tranches, each bearing interest at 1-Month LIBOR + 6.75% with a floor of 2.17%. Under the terms of the agreement, an initial tranche of $20 million was funded at closing.
KindredBio is required to make interest only payments on a monthly basis through October 2021. An additional $30 million will be available in two tranches at the company’s option, subject to certain conditions. The entire debt facility will mature on September 30, 2024. Further information with respect to the credit facility is set forth in a Form 8-K filed by KindredBio with the Securities and Exchange Commission on October 2, 2019.
Cantor Fitzgerald & Co acted as Sole Lead Arranger and financial advisor to KindredBio on this transaction.
KindredBio’s President and Chief Operating Officer, Denise Bevers, will present today at the Cantor Global Healthcare Conference in New York City. The presentation will take place at 8:20-8:50a.m ET in Grand Ballroom 2, and will be webcast here.
About Kindred Biosciences
Kindred Biosciences is a commercial-stage biopharmaceutical company focused on saving and improving the lives of pets. Its mission is to bring to pets the same kinds of safe and effective medicines that human family members enjoy. The company’s strategy is to identify compounds and targets that have already demonstrated safety and efficacy in humans and to develop therapeutics based on these validated compounds and targets for dogs, cats, and horses. KindredBio has a deep pipeline of novel drugs and biologics in development across many therapeutic classes.
About Solar Capital Partners, LLC.
Solar Capital Partners, LLC (“Solar Capital Partners”) is an SEC-registered investment adviser that primarily invests directly in leveraged, U.S. middle market companies in the form of cash flow and asset-based senior secured investments. Solar Capital Partners manages approximately $5.5 billion of investable capital, including serving as the investment adviser to two publicly-traded business development companies, Solar Capital Ltd. and Solar Senior Capital Ltd. Solar Capital Partners’ life science lending business provides financing solutions for later-stage bio-pharma, medical device, healthcare IT and healthcare services companies, both venture-backed private and public, and from pre-revenue clinical to early commercial stage. For more information, please visit http://www.solarcapltd.com/Life-Science-Lending.c