Narrative
Full Description
Project narrative
On August 28, 2023, financial close was reached on a deal in which a syndicate of 16 banks — including Bank of China and Agricultural Bank of China — entered into a $1.5 billion USD syndicated loan agreement with Biogen Inc., a U.S.-based biotechnology company that specializes in the development of therapies for neurological and neurodegenerative diseases. The maturity of the loan is 5 years and the interest rate is SOFR plus an applicable margin. The use of proceeds was for the acquisition of Reata Pharmaceutical. While Bank of China (Record ID#107698) and Agricultural Bank of China contributed to this loan (Record ID#107699), the following lenders also participated: JPMorgan Chase Bank, N.A.; Bank of America, N.A.; Citibank, N.A.; Deutsche Bank AG New York Branch; Mizuho Bank, Ltd.; Morgan Stanley Bank, N.A.; U.S. Bank National Association; Wells Fargo Bank, N.A.; Banco Bilbao Vizcaya Argentaria, S.A. New York Branch; State Bank of India, New York Branch; The Toronto-Dominion Bank, New York Branch; The Bank of Nova Scotia; Societe Generale; and First National Bank of PA. On September 26, 2023, the company completed the acquisition of Reata Pharmaceuticals.
Staff comments
1. The entirety of the 2023 loan contract can be accessed at https://investors.biogen.com/static-files/12ec8c43-86d2-431d-b4f5-62557555a1c6. The dropbox link is accessible here: https://www.dropbox.com/scl/fi/st9vyfn8hkq6dibh4goaw/Source_ID_216335.pdf?rlkey=oryig6wpjug64g88otdfcoq2j&st=hpnpyf6m&dl=0 2. Biogen Inc. is an American multinational biotechnology company headquartered in Cambridge, Massachusetts. Founded in 1978, Biogen focuses on developing therapies for neurological diseases, including multiple sclerosis, amyotrophic lateral sclerosis (ALS), and Alzheimer’s disease. Reata Pharmaceuticals, Inc. (now part of Biogen), was a biopharmaceutical company focused on developing therapeutics, particularly for rare neurological diseases. 3. AidData estimates the interest rate by adding the 6-month average SOFR rate in August 2023 and an applicable margin based on credit ratings (BBB+ or 1.25%). 4. AidData assumes the Chinese banks contributed to both tranches of the loan. This issue warrants more investigation. 5. AidData estimates the average maturity by taking the average of the two tranches (1 year and 3 years, respectively). 6. The individual contributions of the 16 lenders to this $1.5 billion USD syndicated loan are unknown. For the time being, AidData has estimated the contribution of BOC and ABC by assuming that each lender contributed an equal amount ($93750000) to the loan syndicate. 7. The entirety of the 2020 loan contract can be accessed at https://www.sec.gov/Archives/edgar/data/875045/000119312520022940/d854655dex101.htm. The dropbox link is accessible here: https://www.dropbox.com/scl/fi/xxp5btk2gknzhyagvnhst/Source_ID_216334.pdf?rlkey=h9k0i35a2imxyld6y0owq2deh&st=tclcuh4h&dl=0