Saint-Herblain (France), January 15, 2021 – Valneva SE (“Valneva” or “the Company”), a specialty vaccine company focused on prevention against diseases with major unmet needs, today announced an amendment to the terms of its existing debt facility with US-based healthcare investment firms Deerfield Management Company and OrbiMed.
Noting the COVID-19 pandemic impact on the travel industry, and following a temporary waiver of the revenue covenant for the second half of 2020, Valneva, Deerfield and OrbiMed have agreed to modify this covenant for 2021 and 2022, replacing the twelve month rolling €115 million with quarterly minimum revenues representing an annual total of €64 million in 2021 and an annual total of €103.75 million in 2022. The parties have also agreed to modify the minimum cash requirement to €50 million for 2021 and 2022 and to €35 million for the following years.
In February 2020, Valneva announced a broad debt financing arrangement with funds managed by Deerfield Management Company and OrbiMed. The transaction included an initial $60 million fixed rate debt and flexible terms to draw down an additional $25 million in the next twelve months. To date, Valneva has drawn down $60 million from this $85 million financing arrangement.
At the beginning of January 2021, Valneva reported preliminary and unaudited cash and cash equivalents of €204.4 million at the end of December 2020, exceeding its guidance of between €180 million and €200 million.
Deerfield is an investment management firm committed to advancing healthcare through investment, information and philanthropy.
OrbiMed is a leading healthcare investment firm, with $13 billion in assets under management. OrbiMed invests globally across the healthcare industry, from start-ups to large multinational corporations, utilizing a range of private equity funds, public equity funds, and royalty/credit funds. OrbiMed maintains offices in New York City, San Francisco, Shanghai, Hong Kong, Mumbai and Herzliya. OrbiMed seeks to be a capital provider of choice, providing tailored financing solutions and global team resources and support to help build world-class healthcare companies.
About Valneva SE
Valneva is a specialty vaccine company focused on prevention of infectious diseases with significant unmet medical need. The Company has several vaccines in development including unique vaccines against Lyme disease, COVID-19 and chikungunya. Valneva’s portfolio includes two commercial vaccines for travelers: IXIARO®/JESPECT® indicated for the prevention of Japanese encephalitis and DUKORAL® indicated for the prevention of cholera and, in some countries, prevention of diarrhea caused by ETEC. Valneva has operations in Austria, Sweden, the United Kingdom, France, Canada and the U.S. with over 500 employees.
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