JWCA advises Paratek Pharmaceuticals on its $32.5 million royalty-backed loan with healthcare royalty partners

february 2019 | read press release

Transaction Background

Paratek Pharmaceuticals, Inc. (the “Company”) hired J. Wood Capital Advisors as its Financial Advisor to advise on a capital raise based on the Company’s rights to receive royalties from net sales of SEYSARA in the United States

Objectives:

• Raise new capital to continue product development and support the launch of NUZYRA

• Maintain upside in SEYSARA royalty stream

• Achieve cost of capital lower than other financing options available

• Provide flexibility for future financing

• Avoid shareholder dilution and restrictive covenants

JWCA ran a process to identify lenders that could best help Paratek achieve its objectives.  Upon obtaining terms from lenders, JWCA:

• Analyzed different structures to help the Company select the proposal that best met its objectives

• Negotiated with lenders on Company’s behalf to obtain the best terms available

Results

• Helped the Company to raise capital in a challenging macro environment for the anti-infective space

• Achieved financing outcome that balanced the Company’s objectives, including proceeds raised, cost of capital, and maintaining upside in SEYSARA