ADC Therapeutics amends loan; adds ZYNLONTA sales covenant, eases out-license repay

ADC Therapeutics SA

New revenue covenant requires ZYNLONTA net sales from $45.5M (trailing 3Q Jun'24) to $94.2M (4Q Jun'29).
Out-licensing repayment threshold raised to $75M (from $50M); mandatory paydown cut to 25% (from 30%).
Covenant not tested if 30-day avg market cap ≥ $650M; prepayment cure right limited to 3 events, max 2 consecutive.
Lenders waived alleged non-financial defaults and consented to potential Delaware reincorporation.
Amendment targets greater flexibility for out-licensing preclinical compounds while adding measurable sales target.

Key facts

Extracted from this filing and checked against the source text.

Material Agreements SEC 8-K Item 1.01/1.02 confidence 0.9

ADC Therapeutics SA amended First Amendment with lenders party thereto, Blue Owl Opportunistic Master Fund I, L.P., as administrative agent and collateral agent (effective 2024-01-16).

Action: amendment
Agreement: credit facility
Counterparty: lenders party thereto, Blue Owl Opportunistic Master Fund I, L.P., as administrative agent and collateral agent
Effective: 2024-01-16

Exact text from the filing

On January 16, 2024, the Company and certain of its subsidiaries entered into the First Amendment (the "Amendment") to the loan agreement and guaranty, dated August 15, 2022, among the Company, its subsidiaries party thereto, the lenders party thereto and Blue Owl Opportunistic Master Fund I, L.P., as administrative agent and collateral agent (the "Credit Agreement").

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ADC Therapeutics SA filing history →

Source: SEC EDGAR

accession 0000950103-24-000925

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