Capital Royalty Provides Financing to Bioniche Life Sciences
Effective April 10, 2012, Capital Royalty Partners II, entered into a $20 million term loan and revenue interest financing agreement with Bioniche Life Sciences, a research-based, technology-driven Canadian biopharmaceutical company. Under the terms of the agreement, Capital Royalty provided Bioniche a five-year $20 million loan, with proceeds from the financing intended to support corporate growth initiatives across Bioniche’s three primary business units – Human Health, Animal Health, and Food Safety.
Royalty Bond Primer for Issuers
Royalty bonds are a viable alternative source of capital for companies and institutions seeking to monetize royalty entitlements. Specifically, royalty bonds are a source of non-dilutive debt financing with a competitive cost of capital for issuers, provide a means of managing risk without eliminating exposure to a royalty stream, and have favorable tax and accounting treatment. To date, over $2 billion of royalty bonds have been structured, issued, and traded by royalty investors including Capital Royalty.