Oramed Pharmaceuticals Secures $101.9M Senior Secured Note Deal With Scilex

Author: Benzinga Newsdesk | September 22, 2023 01:35am

• An initial principal balance of $101,875,000.00;
• A senior lien for Oramed on substantially all assets of Scilex and its subsidiaries, subject to certain exclusions;
• 18-month maturity;
• Certain mandatory prepayment obligations tied to future equity or debt financings of Scilex (subject to certain limitations specified in the Note);
• Interest rate per annum is equal to the SOFR plus 8.5% (and subject to a SOFR floor of 4.0%);
• Repayment of principal in installments will commence on December 21, 2023, with a fixed portion of the principal balance required to be repaid in three month increments thereafter. If the Note is not repaid in full on or prior to March 21, 2024, an exit fee equal to $3,056,250.00 becomes payable upon repayment of the Note in full;
• $2.91 million of expense reimbursement for Oramed; and
• The right for Oramed to designate an observer to Scilex's Board of Directors (and the boards or similar governing bodies of its subsidiaries). The right of Oramed to receive certain customary information relating to Scilex.

Posted In: ORMP SCLX