Blue Owl Capital Invests up to $140 Million in XOMA Corporation

Washington, DC – December 19, 2023 – Cooley advised Blue Owl Capital, a top asset manager that is redefining alternatives, on its strategic investment – consisting of a nondilutive, nonrecourse royalty-backed loan of up to $140 million – in XOMA Corporation, a biotechnology royalty aggregator playing a distinctive role in helping biotech companies achieve their goal of improving human health. Lawyers Michael Tollini, Mischi a Marca and Addison Pierce led the Cooley team advising Blue Owl.

Under the terms of the agreement, XOMA drew $130 million in principal from Blue Owl and has the option to draw another $10 million should the royalties received from VABYSMO (faricimab) sales on or prior to March 15, 2026, exceed a predetermined amount. The loan is repayable over a 15-year period, although XOMA may repay it in full at any time during that period, subject to the terms of the loan. Additionally, XOMA has issued to Blue Owl warrants to purchase an aggregate of up to 120,000 shares of XOMA’s common stock in three equal tranches with strike prices of $35, $42.50 and $50 per share, respectively.

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