(Boursier.com) — Nicox signed an agreement in principle to amend its bond issue with funds and mandates managed by BlackRock.
The restructuring of the bond debt is intended to facilitate future financing and the pursuit of strategic options with the goal of enabling the completion of the Denali Phase 3 clinical study of NCX 470.
Debt restructuring and operational cost reductions will extend the period during which only interest on debt will be paid until September 30, 2024, effectively extending the company’s cash flow horizon until November 2024. Subsequently, the interest-only payment period will be extended proportionally and based on potential extensions of the cash flow horizon, provided that the Company raises at least 3 million euros per capital increase by September 30, 2024, which would extend the cash horizon to the first quarter of 2025.
Under the terms of the current bond agreement before amendment, Nicox was to begin repaying the principal of the debt to Kreos from February 1, 2024.
If Nicox decides not to make these payments, the interest rate on the entire debt would be increased to 13.5% (from 9.25%) until these payments are made.
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