Business Overview

• Customized senior secured financing solutions to public and privately-held healthcare companies
• Experienced life science investment team at Solar Capital Partners - over 40 years of combined healthcare lending experience.
• Capital serves as a flexible and minimally dilutive alternative to traditional equity
• Financing enables borrowers to fund the development of clinical initiatives, strategic product acquisitions and product commercialization

Borrower Profile Characteristics

• Focus on late stage bio-pharma and medical device companies
• If private, strong institutional/VC and strategic investor support
• If public, market cap > $50M with institutional/VC and strategic support
• Multi-product pipeline / platform / disruptive technologies
• Broad and protected intellectual property position
• Strong, experienced management teams

Typical Transaction Profile

• Solutions focus on senior secured, floating rate loans

• 3-5 year term, with interest only component followed by straight line monthly amortization

• First lien on assets, LTV’s of <30% typically, with full or negative pledge on intellectual property; lien on cash

• Investment Size: $10 - $125 million

Life Science Segments

• Biotech
• Specialty Pharmaceuticals
• Medical Devices
• Enabling Technologies & Tools
• Healthcare IT
• Healthcare Services

Advantages of Life Science Debt

• Adds capital with minimal dilution
• Extends cash runway position, increasing time between equity investments
• Accelerates growth with limited cost
• Allows companies time to achieve milestones
• Improves borrowers' potential for greater value creation