News
DRI receives $54.8M (U.S.) debt repayment from CTI
2023-06-26 17:44 ET - News Release
Dave Levine
DRI HEALTHCARE TRUST ANNOUNCES US$54.8 MILLION DEBT REPAYMENT FROM CTI BIOPHARMA CORP.
CTI BioPharma Corp. has prepaid all amounts outstanding under the credit facility it entered into with a wholly owned subsidiary of DRI Healthcare Trust, resulting in a $54.8-million (U.S.) prepayment, including principal, accrued interest and fees. The trust provided $50-million (U.S.) in secured debt financing to CTI as part of the $135-million (U.S.) Vonjo transaction, announced on Aug. 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 Vonjo pursuant to the purchase and sale agreement that was also announced on Aug. 25, 2021.