08-05-2012: Intercell AG announced the signing of a combined debt and equity financing with BB Biotech. The investment through a fully owned subsidiary of BB Biotech AG consists of a EUR 20.0 million secured loan (the “Term Loan”) and a commitment to invest EUR 5.0 million as part of a proposed equity private placement (the “Private Placement”).
Intercell is in discussions with specialized healthcare investors regarding proposals for additional investment of EUR 10.0 to 15.0 million as part of the Private Placement. The BB Biotech investment and the Private Placement, which should close before the end of May, are expected to secure Intercell’s funding needs into financial self‐sustainability.
Intercell’s CEO, Thomas Lingelbach, stated: “Following the successful strategic resetting in 2011, this financing marks an important step in the renewal of Intercell as a notable biotech vaccine company. With growing sales from our first product on the market, a diversified pipeline and technology base and a disciplined financial strategy, we are now very well positioned for the next development phase of our company.”
The EUR 20.0 million secured Term Loan provided by BB Biotech has a six‐year term. Repayment starts in the fourth year through twelve equal quarterly installments. The loan carries a variable interest rate of EURIBOR plus 6.5% (but not less than 10.9 %). In addition, Intercell will pay BB Biotech a royalty of 5.0% on its sales revenues from IXIARO®/JESPECT® (decreasing to 1.5% for sales revenues in excess of EUR 50.0 million) for a ten‐year period.
However, Intercell has certain buy‐out rights, which cap the overall interest, royalty and principal repayments. The loan is secured by a security interest in the assets related to IXIARO®/JESPECT®.