Blackstone investing up to $1B in South Plainfield’s PTC

PTC Therapeutics Inc., the South Plainfield-based biopharmaceutical company, announced a financing collaboration with Blackstone that could be worth as much as $1 billion.

The biopharma firm said in a news release that funds managed by the New York-based investment firm are making an initial $500 million commitment, including $350 million in cash upon closing of the transaction.

The transaction will support PTC’s mission to reach a steady state of delivering at least one therapy every two to three years, providing patients globally with transformative medicines.

About PTC Therapeutics Inc.

PTC is a science-driven, global biopharmaceutical company focused on the discovery, development and commercialization of clinically differentiated medicines that provide benefits to patients with rare disorders. PTC’s ability to innovate to identify new therapies and to globally commercialize products is the foundation that drives investment in a robust and diversified pipeline of transformative medicines. PTC’s mission is to provide access to best-in-class treatments for patients who have little to no treatment options. PTC’s strategy is to leverage its strong scientific and clinical expertise and global commercial infrastructure to bring therapies to patients. PTC believes this allows it to maximize value for all its stakeholders.

“This strategic financing will support the acceleration of PTC’s robust and diversified pipeline, business development opportunities and general corporate purposes,” Emily Hill, PTC’s chief financial officer, said in a prepared statement. “Our strong internal drug development and commercialization efforts, record of business development and value creation, combined with Blackstone’s network and life sciences expertise, puts PTC in a strong position to continue to execute our mission.”

Specifics of the transaction include:

  • $300 million of senior secured debt, at 7.25%+SOFR for a seven-year term;
  • $50 million purchase of PTC common stock;
  • $150 million delayed draw debt for up to 18 months;
  • $500 million in potential credit facility or other investment capital, subject to mutual agreement.

WilmerHale served as legal counsel to PTC, while Ropes & Gray LLP served as legal counsel to Blackstone.