- 9% secured convertible bonds replace €5 million in Kreos debt
- Conversion price €2 per share
- Remaining Kreos debt facilities reduced to €1.6 million
Amsterdam, The Netherlands, October 1, 2020 – Kiadis Pharma N.V. (“Kiadis” or the “Company”) (Euronext Amsterdam and Brussels: KDS), a clinical-stage biopharmaceutical company developing innovative NK-cell-based medicines for the treatment of life-threatening diseases, announces the placement of €5 million of secured convertible bonds to Kreos Capital V (UK) Limited (“Kreos”) in consideration for Kreos waiving the equivalent amount of €5 million in cash repayments under the Kreos debt facilities that the Company entered into with Kreos in 2017 and 2018. As a result of the placement of the bonds, the outstanding amount under the Kreos debt facilities has decreased to €1.6 million.
Arthur Lahr, chief executive officer of Kiadis, commented, “The restructuring of our debt with Kreos reduces our cash burn. We have been paying €1.9 million per quarter in cash instalments of principal and interest to Kreos and the execution of these convertible bonds eliminates those payments well into 2021 and reduces our remaining Kreos debt burden to €1.6 million.”
Maurizio PetitBon, general partner of Kreos Capital, commented, “We have been an investor in Kiadis for many years and are very pleased with Kiadis’ developments especially with its recent refocus on its proprietary K-NK platform. The conversion of a sizeable portion of our loan into a convertible structure is a confirmation of our belief in the long-term potential of both the Company and its K-NK platform.”
The bonds are unlisted, will be issued at par and will carry a coupon of 9.00% per annum, with interest on the bonds paid at maturity. The bonds can be converted into ordinary shares of the Company with the conversion price being €2.00, subject to adjustment in the case of share split or consolidation. The bonds are due September 30, 2021 but this due date may be extended by Kreos to September 30, 2022.