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  • Life Science Lending

    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

    Life Science Segments

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

    Portfolio Snapshot

    As of September 30, 2018
    Investment Portfolio: $205 million
    # of Issuers:
    18 issuers
    Average Position Size: $11.4 million 
    % of Investments Secured:
    100%
    % of Investments Floating
    100%
    Weighted Average Asset-level Yield:
    11.6%(1)
    Life Science Portfolio s a % of ~$1.7 billion Comprehensive Investment Portfolio  12.0%

    (1) Represents the weighted average of each individual loan's yield to maturity based on fair value at 9/30/2018, excluding exit fees or warrants.

     

    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

  • Investment Team
    Recent Life Science Debt Transactions