Quotient announces $120M secured debt financing
Quotient Limited announced the completion of a private placement of up to $120M of 12% Senior Secured Notes due 2023. At the initial closing of the transaction, Quotient issued $84 million of notes and received net proceeds of approximately $79 million after expenses. Quotient will issue an additional $36 million of notes to note purchasers upon public announcement of field trial results for the MosaiQ IH Microarray that demonstrates greater than 99% concordance for the detection of blood group antigens and greater than 95% concordance for the detection of blood group antibodies when compared to predicate technologies for a pre-defined set of blood group antigens and antibodies. Quotient intends to use the net proceeds from this transaction, among other things, to repay all outstanding obligations to MidCap Financial Trust under its existing loan agreement and for general corporate purposes. Morgan Stanley acted as sole placement agent for the transaction. Additionally, Quotient has sold a royalty right to the note purchasers, representing a right to receive an aggregate 2.0% royalty payment on net sales of MosaiQ instruments and consumables in the donor testing market in the European Union and the United States. The royalty will be payable beginning on the date that Quotient or its affiliates enters into a contract for the sale of MosaiQ instruments or consumables in the donor testing market in the European Union or the United States and ending on the last day of the calendar quarter in which the eighth annual anniversary of the first contract date occurs. Shares of Quotient are up 5% or 38c to $8 per share in after-hours trading.