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GTC Biotherapeutics Enters Agreements with LFB for Funding of $12.3 Million with an Option for LFB to Fund an Additional $6.4 Million.

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GE Capital Term Loan Refinanced

FRAMINGHAM, Mass. -- GTC Biotherapeutics, Inc. ("GTC", NASDAQ: GTCBD) has entered into agreements with LFB Biotechnologies, a wholly owned subsidiary of LFB S.A. (Laboratoire fran[?]ais du Fractionnement et des Biotechnologies S.A., Les Ulis, France) a current strategic shareholder in GTC, to provide a total of $12.3 million of cash proceeds to GTC with an option to provide up to an additional $6.4 million of cash proceeds. The financing consists of bridge debt and, subject to GTC shareholder approval, convertible preferred stock. GTC is receiving $4 million of cash proceeds under a $4.5 million secured convertible bridge note delivered upon signing, with an additional $8.3 million of cash proceeds due upon the receipt of GTC shareholder approval and issuance of the convertible preferred stock. The bridge debt will automatically convert into convertible preferred stock upon shareholder approval. The convertible preferred stock will carry a 10% dividend over 5 years, and the total coupon amount of $12.8 million will be fully funded by LFB Biotechnologies and placed into escrow at closing to secure the future dividends from this convertible preferred stock. The conversion price for 47% of the convertible preferred stock will be $2.63 per share of...

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