DC Advisory advises Biocartis on enforcement by secured creditors and recapitalization of its main operating subsidiaries

Background

• Biocartis Group NV (Biocartis) is an innovative molecular diagnostics company listed on Euronext Brussels (BCART)
• Using its proprietary Idylla^TM platform, a fully automated real-time PCR based system, Biocartis provides next generation diagnostic solutions to hospital and labs worldwide, with a focus in oncology
• Despite its first recapitalization in 2022 and a cost reduction program in H1 2023, Biocartis required additional capital to continue its growth strategy towards EBITDA break-even
• Biocartis had approximately €43m of first lien debt, €116m of second lien convertible notes, and €16m of unsecured convertible notes

Process

• DC Advisory acted as exclusive financial advisor to Biocartis and its group companies
• DC Advisory worked in close collaboration with Biocartis and its creditors to negotiate and secure a comprehensive restructuring and recapitalization
  • This was achieved by way of a security enforcement by the secured creditors over the shares of the main subsidiaries of Biocartis. These assets have been transferred to a newly incorporated entity owned by the secured creditors
• DC Advisory assisted on all aspects of the transaction, negotiating and obtaining the approvals needed from Biocartis’ first and second lien creditors, securing the backstops necessary to the €40m rights offering, and implementing all steps necessary to effect the transaction

Outcome

• The transaction was supported by 100% of the second lien convertible noteholders and 100% of the first lien lenders and achieved the following:
  • Reduction of the debt burden by €132m through a full equitization of the second lien convertible notes and a write-off of the unsecured convertible notes
  • Injection of €40m of new equity capital through a rights offering by the newly incorporated entity, fully backstopped by certain creditors
  • Maturity extension on the rolled first lien debt
  • Ensuring continuity for Biocartis’ operating companies while safeguarding the interest of customers, suppliers, partners, and employees

“We would like to thank the DC Advisory team led by Ed Kulik for their dedication, guidance, and extremely valuable support throughout this difficult process. This transaction was necessary and is expected to provide the Biocartis business with the funding needed to continue its mission.”

“We appreciate the trust given to us by Biocartis in a challenging situation. We are pleased to have helped restructure its balance sheet and secure the funding needed on its path to profitability.”