DRI Healthcare Trust Announces US$54.8 Million Debt Repayment from CTI BioPharma Corp.
– Provides additional deployment capacity in pursuing attractive deals in high-quality pipeline –
TORONTO, June 26, 2023 /CNW/ - DRI Healthcare Trust (TSX: DHT.UN) (TSX: DHT.U) (the "Trust"), a global leader in providing royalty financing to accelerate therapeutic innovation in the life sciences industry, announces that CTI BioPharma Corp. ("CTI") has prepaid all amounts outstanding under the credit facility it entered into with a wholly-owned subsidiary of the Trust, resulting in a US$54.8 million prepayment, including principal, accrued interest and fees. The Trust provided US$50 million in secured debt funding to CTI as part of the US$135 million VONJOTM transaction, announced on August 25, 2021.
"The capital from the repayment provides us with additional capacity to pursue attractive deals in our pipeline that will allow us to continue delivering value to our unitholders," said Behzad Khosrowshahi, Chief Executive Officer of the Trust.
The loan prepayment was driven by Swedish Orphan Biovitrum's acquisition of CTI. As a result of the prepayment, the credit agreement between the Trust's wholly-owned subsidiary and CTI was terminated. The Trust maintains its royalty investment in VONJOTM pursuant to the purchase and sale agreement that was also announced on August 25, 2021.
DRI Healthcare Trust is managed by DRI Capital Inc. ("DRI Capital"), the pioneer in global pharmaceutical royalty monetization with a more than 30-year history of accelerating innovation by providing capital to inventors, academic institutions and biopharma companies. Since our founding in 1989, DRI Capital has deployed more than US$2.5 billion, acquiring more than 70 royalties on 40-plus drugs, including Eylea, Spinraza, Zytiga, Remicade, Keytruda and Stelara. DRI Healthcare Trust's units are listed and trade on the Toronto Stock Exchange in Canadian dollars under the symbol "DHT.UN" and in U.S. dollars under the symbol "DHT.U". To learn more, visit drihealthcare.com or follow us on LinkedIn. References in this news release to "DRI Healthcare" refer to the Trust and its subsidiaries, on a consolidated basis.
This news release may contain forward-looking information within the meaning of applicable securities legislation. Forward-looking information generally can be identified by the use of forward-looking words such as "expect", "continue", "anticipate", "intend", "aim", "plan", "believe", "budget", "estimate", "forecast", "foresee", "close to", "target" or negative versions thereof and similar expressions. Forward-looking information is based on a number of assumptions and is subject to a number of risks and uncertainties, many of which are beyond the Trust's control that could cause actual results to differ materially from those that are disclosed in or implied by such forward-looking information. These risks and uncertainties include, but are not limited to, those that are disclosed in the Trust's most recent annual information form. All forward-looking information in this news release speaks as of the date of this news release. The Trust does not undertake to update any such forward-looking information whether as a result of new information, future events or otherwise except as required by law. Additional information about these assumptions and risks and uncertainties is contained in the Trust's filings with securities regulators, including its latest annual information form and Management's Discussion and Analysis. These filings are also available at the Trust's website at drihealthcare.com.
SOURCE DRI Healthcare Trust
Please contact: Dave Levine, Director, Investor Relations, Tel: (416) 324-5738, [email protected]
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