Aptevo Therapeutics Closes $35 Million Term Loan Agreement

SEATTLE–(BUSINESS WIRE)–Aptevo Therapeutics Inc. (Nasdaq:APVO), a biotechnology company focused
on developing novel oncology and hematology therapeutics, announced
today that it has closed on a $35 million term loan agreement previously
announced on August 1, 2016.
“The $35 million term loan agreement further strengthens our balance
sheet and provides additional operational flexibility at an attractive
cost of capital,” stated Marvin White, President and Chief Executive
Officer. Combined with the $65 million in total cash contribution from
Emergent Biosolutions, and the cash flow from our commercial products,
Aptevo is well capitalized to pursue our corporate objectives and
advance our novel pipeline of oncology and hematology therapeutics.”
The MidCap financing provides Aptevo with up to $35 million of potential
borrowing capacity, which is available to the Company in two tranches of
$20 million and $15 million, at the Company’s discretion, through
January 2021. The agreement bears interest at a rate of LIBOR plus 7.60%
per annum.
The first tranche, in the amount of $20 million, was funded on August 4,
2016 effective with closing of the term loan agreement. Aptevo will be
able to draw the second tranche at its discretion after meeting the
following financial covenants: achieving net commercial product revenue
of $40 million on a trailing 12 month basis and receipt of a final cash
installment of $20 million from Emergent BioSolutions to be paid within
6-12 months of the effective date of the separation, August 1^st,
2016.
About Aptevo Therapeutics Inc.
Aptevo Therapeutics Inc. is a biotechnology company focused on novel
oncology and hematology therapeutics to meaningfully improve patients’
lives. Our core technology is the ADAPTIR™ (modular protein technology)
platform. Aptevo has four commercial products in the areas of hematology
and infectious diseases, as well as various investigational stage
product candidates in immuno-oncology.
About MidCap Financial
MidCap Financial is a middle-market focused, specialty finance firm that
provides senior debt solutions to businesses across all industries. The
firm’s years of experience, strong balance sheet, and flexibility make
it a lender of choice for companies across all stages of growth and
complexity. MidCap Financial’s debt solutions focus in five areas:

• General and healthcare asset-based working capital loans
  collateralized by third-party accounts receivable and other assets;
• Leveraged loans to companies backed by private equity sponsors;
• Life sciences loans to VC-backed and public pharmaceutical, biotech,
  and medical device companies;
• Real estate loans on all types of commercial properties, medical
  office buildings, various types of senior housing and skilled nursing
  properties; and
• Lender finance term loans or revolvers provided across the consumer
  and commercial finance sectors.

Additional information about MidCap Financial can be found at www.midcapfinancial.com.
Safe Harbor Statement
This press release includes forward-looking statements within the
meaning of the Private Securities Litigation Reform Act of 1995. Any
statements, other than statements of historical fact, including, without
limitation, statements regarding the potential opportunities and
financial impact of the transaction, our technology and related
pipeline, collaboration and partnership opportunities and any other
statements containing the words “believes,” “expects,” “anticipates,”
“intends,” “plans,” “forecasts,” “estimates,” “will” and similar
expressions are forward-looking statements. These forward-looking
statements are based on Aptevo’s current intentions, beliefs and
expectations regarding future events. Aptevo cannot guarantee that any
forward-looking statement will be accurate. Investors should realize
that if underlying assumptions prove inaccurate or unknown risks or
uncertainties materialize, actual results could differ materially from
Aptevo’s expectations. Investors are, therefore, cautioned not to place
undue reliance on any forward-looking statement. Any forward-looking
statement speaks only as of the date of this press release, and, except
as required by law, Aptevo does not undertake to update any
forward-looking statement to reflect new information, events or
circumstances.
There are a number of important factors that could cause our actual
results to differ materially from those indicated by such
forward-looking statements, including possible negative effects on our
business operations, assets or financial results as a result of the
separation; a deterioration in our business or prospects; adverse
developments in our customer-base or markets; adverse developments in
the U.S. or global capital markets, credit markets or economies
generally; and changes in regulatory, social and political conditions.
Additional risks and factors that may affect results are set forth in
our filings with the Securities and Exchange Commission, including our
Registration Statement on Form 10, as amended. The foregoing sets forth
many, but not all, of the factors that could cause actual results to
differ from our expectations in any forward-looking statement.