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Aptevo Therapeutics Closes $35 Million Term Loan Agreement

SEATTLE--(BUSINESS WIRE)--Aug. 5, 2016-- Aptevo Therapeutics Inc. (Nasdaq:APVO), a biotechnology company focused on developing novel oncology and hematology therapeutics, announced today that it has closed on a $35 million term loan agreement previously announced on August 1, 2016.

“The $35 million term loan agreement further strengthens our balance sheet and provides additional operational flexibility at an attractive cost of capital,” stated Marvin White, President and Chief Executive Officer. Combined with the $65 million in total cash contribution from Emergent Biosolutions, and the cash flow from our commercial products, Aptevo is well capitalized to pursue our corporate objectives and advance our novel pipeline of oncology and hematology therapeutics.”

The MidCap financing provides Aptevo with up to $35 million of potential borrowing capacity, which is available to the Company in two tranches of $20 million and $15 million, at the Company’s discretion, through January 2021. The agreement bears interest at a rate of LIBOR plus 7.60% per annum.

The first tranche, in the amount of $20 million, was funded on August 4, 2016 effective with closing of the term loan agreement. Aptevo will be able to draw the second tranche at its discretion after meeting the following financial covenants: achieving net commercial product revenue of $40 million on a trailing 12 month basis and receipt of a final cash installment of $20 million from Emergent BioSolutions to be paid within 6-12 months of the effective date of the separation, August 1st, 2016.

About Aptevo Therapeutics Inc.

Aptevo Therapeutics Inc. is a biotechnology company focused on novel oncology and hematology therapeutics to meaningfully improve patients’ lives. Our core technology is the ADAPTIR™ (modular protein technology) platform. Aptevo has four commercial products in the areas of hematology and infectious diseases, as well as various investigational stage product candidates in immuno-oncology.

About MidCap Financial

MidCap Financial is a middle-market focused, specialty finance firm that provides senior debt solutions to businesses across all industries. The firm’s years of experience, strong balance sheet, and flexibility make it a lender of choice for companies across all stages of growth and complexity. MidCap Financial’s debt solutions focus in five areas:

  • General and healthcare asset-based working capital loans collateralized by third-party accounts receivable and other assets;
  • Leveraged loans to companies backed by private equity sponsors;
  • Life sciences loans to VC-backed and public pharmaceutical, biotech, and medical device companies;
  • Real estate loans on all types of commercial properties, medical office buildings, various types of senior housing and skilled nursing properties; and
  • Lender finance term loans or revolvers provided across the consumer and commercial finance sectors.

Additional information about MidCap Financial can be found at www.midcapfinancial.com.

Safe Harbor Statement

This press release includes forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Any statements, other than statements of historical fact, including, without limitation, statements regarding the potential opportunities and financial impact of the transaction, our technology and related pipeline, collaboration and partnership opportunities and any other statements containing the words “believes,” “expects,” “anticipates,” “intends,” “plans,” “forecasts,” “estimates,” “will” and similar expressions are forward-looking statements. These forward-looking statements are based on Aptevo’s current intentions, beliefs and expectations regarding future events. Aptevo cannot guarantee that any forward-looking statement will be accurate. Investors should realize that if underlying assumptions prove inaccurate or unknown risks or uncertainties materialize, actual results could differ materially from Aptevo’s expectations. Investors are, therefore, cautioned not to place undue reliance on any forward-looking statement. Any forward-looking statement speaks only as of the date of this press release, and, except as required by law, Aptevo does not undertake to update any forward-looking statement to reflect new information, events or circumstances.

There are a number of important factors that could cause our actual results to differ materially from those indicated by such forward-looking statements, including possible negative effects on our business operations, assets or financial results as a result of the separation; a deterioration in our business or prospects; adverse developments in our customer-base or markets; adverse developments in the U.S. or global capital markets, credit markets or economies generally; and changes in regulatory, social and political conditions. Additional risks and factors that may affect results are set forth in our filings with the Securities and Exchange Commission, including our Registration Statement on Form 10, as amended. The foregoing sets forth many, but not all, of the factors that could cause actual results to differ from our expectations in any forward-looking statement.

Source: Aptevo Therapeutics

Aptevo Therapeutics
Stacey Jurchison, 206-859-6628
Senior Director, Investor Relations and Corporate Communications
JurchisonS@apvo.com