NEW YORK, Aug. 28, 2020 (GLOBE NEWSWIRE) -- Fortress Biotech, Inc. (NASDAQ:FBIO) (“Fortress”), an innovative revenue-generating company focused on acquiring, developing and commercializing or monetizing promising biopharmaceutical products and product candidates cost-effectively, today announced that it has entered into a $60 million loan agreement with funds managed by Oaktree Capital Management, L.P. (“Oaktree”), a leading global investment firm (the “Agreement”). The company expects the proceeds from the five-year loan will be used to refinance existing indebtedness. The loan will mature in August 2025.
Lindsay A. Rosenwald, M.D., Chairman, President and Chief Executive Officer of Fortress, said, “We are very pleased to close this transaction with Oaktree. The proceeds of this investment will quickly strengthen our near-term liquidity, address the maturity of our existing debt agreements, and will reduce our cash debt service costs. This agreement provides additional resources to Fortress to bolster our business development and operating initiatives, as well as build upon our long-term growth strategy, which includes key goals of bringing meaningful treatment options to patients in need and enhancing shareholder value.”
Aman Kumar, Managing Director at Oaktree, commented, “We are delighted to partner with Fortress to provide financial support so they can refinance existing debt, and focus on acquiring, developing and commercializing high-potential marketed and development-stage products and product candidates. We are extremely excited by the Fortress model and value creation strategy. We believe Fortress is well-positioned to deliver on key value-creating catalysts for the next several years.”
Cantor Fitzgerald & Co served as financial advisor to Fortress and Sidley Austin, LLP served as legal counsel to Fortress. Sullivan & Cromwell LLP served as legal counsel to Oaktree.
Further information with respect to the term loan is set forth in a Form 8-K filed by Fortress with the Securities and Exchange Commission (“SEC”) on August 28, 2020.