JWCA advises bluebird bio on its $175 million term loan facility
march 2024 | read press release
Transaction Background
bluebird bio, Inc. (“bluebird” or “the Company”) wanted to raise capital to help strengthen its balance sheet and fund the launch of recently-approved gene therapy LYFGENIA for sickle cell disease. bluebird engaged J. Wood Capital Advisors (“JWCA”) to advise on the financing.
The Company’s objectives included:
Raise significant upfront proceeds via non-dilutive capital to support the launch
Strengthen balance sheet at an attractive cost of capital with the ability to further extend cash runway on future milestones to minimize “financing overhang”
Partner with a well-respected, high-quality investor to provide further validation of bluebird’s story and grow with the company
Minimize financial covenants while maximizing financial and operational flexibility for management
JWCA worked closely with bluebird to identify investors and financing vehicles that could meet the company’s objectives. JWCA then ran a competitive process with investors to obtain financing at the best possible pricing and terms for bluebird. Upon receiving terms from lenders, JWCA:
Analyzed proposals to help bluebird select the one that best met its objectives
Negotiated with investors to optimize pricing and terms from initial term sheets through final definitive documentation
Results
bluebird successfully executed the non-dilutive debt financing at best-available terms, pricing, and flexibility
Achieved a financing outcome that balanced the company’s objectives with a sizeable upfront tranche and additional committed milestone-based capital