Mintz advised global investment firm Sixth Street in a non-dilutive, senior secured credit facility of up to $475 million for Apellis Pharmaceuticals (Nasdaq: APLS). Apellis received $375 million in funding at close, with ability to access an additional $100 million under the facility at the Company’s option prior to September 2025, subject to the satisfaction of certain conditions. 

Apellis used the majority of the net proceeds to buy out the existing SFJ Pharmaceuticals development liability for approximately $326 million. This buy out eliminates $366 million in payments owed to SFJ through 2027, including approximately $200 million through 2025. Net proceeds to Apellis at closing will be approximately $32 million following the buy out of the SFJ Pharmaceuticals development liability, and fees and expenses associated with the transaction.

The new senior secured credit facility matures on May 13, 2030, and bears interest at an annual rate equal to the 3-month Secured Overnight Financing Rate (SOFR) + 5.75% (subject to 1.00% floor), with certain additional fees and prepayment terms. There are no scheduled amortization payments during the term of the facility, with all principal due on the maturity date. The credit facility obligations are secured by substantially all assets of Apellis, and the credit facility includes certain affirmative and negative covenants consistent with a facility of this type.

TD Cowen, a division of TD Securities, acted as investment advisor to Apellis. Mintz worked with Proskauer Rose LLP as co-counsel. The Mintz team was led by Richard Gervase, Member and Chair of the firm’s Royalty & Revenue Interest Financing Transactions Group, with support from Member Joanne Hawana (Regulatory) and Associates Christine Pemberton (IP), Paul St. Marie (IP), Stephnie John (Regulatory), Steve Callegari (Corporate), and Bertie Magit (Corporate).

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