Covington Advises OrbiMed in $75 Million Debt Financing

Covington Advises OrbiMed in $75 Million Debt Financing

March 22, 2023

NEW YORK—Covington represented an investment fund affiliated with OrbiMed Advisors in a $75 million delayed draw senior secured loan to be provided to Palette Life Sciences. Under the terms of the debt facility, Palette Life Sciences can borrow up to $75 million based on the achievement of certain milestones and other specified conditions, including $50 million immediately available at closing.

The financing will be used by Palette Life Sciences to refinance existing indebtedness and to finance its general corporate purposes.

OrbiMed is a healthcare investment firm, with approximately $19 billion in assets under management. OrbiMed invests globally across the healthcare industry through a range of private equity funds, public equity funds, and royalty/credit funds.

Palette Life Sciences is a fully integrated life sciences company whose products improve patient outcomes in radiotherapy and interventional oncology procedures, urology/urogynecology disorders and colorectal conditions. Palette Life Science's portfolio of available products includes Barrigel®, Deflux®, Solesta® and Lidbree™.

The Covington team included Peter Schwartz, Melanie Cook, and Montene Speight (Finance), Kurt Baca and Sumaya Bouadi (Tax), Scott Danzis and Stefanie Doebler (Regulatory), and Mike Francese (Employee Benefits).