Executed a Value Maximizing Sale Process for a Public Biotechnology Company

Portage Point served as both investment banker and restructuring advisor to Omega Therapeutics

SITUATION OVERVIEW

Omega Therapeutics, a public biotechnology company focused on developing programmable epigenomic mRNA medicines, operated in a capital-intensive sector requiring sustained investment in research and clinical development. Due to significant research and development (R&D) costs, the Company faced increasing liquidity pressure. 

While evaluating strategic alternatives to support its long-term strategy, the Company’s secured lender exercised cash dominion, creating an immediate liquidity crisis.

PORTAGE POINT APPROACH

• Ran a comprehensive, expedited marketing process for the Company’s assets and a derivative litigation claim, securing a stalking horse bid for substantially all assets, validating market demand and maximizing transaction value 
• Successfully negotiated with the unsecured creditors committee (UCC), reaching a settlement that yielded a sizeable recovery to creditors 
• Stabilized liquidity and preserved enterprise value by overseeing cash management and developing a 13-week cash flow forecast and debtor in possession (DIP) sizing model to quantify funding needs throughout the process 

POSITIVE IMPACT

Portage Point executed a competitive, fast-tracked §363 sale that maximized value under acute liquidity constraints and enabled the sale of substantially all assets. The efficiencies created by an integrated financial advisor and investment banking team helped to preserve value and deliver meaningful recovery to creditors.  

During confirmation, Judge Shannon noted that “the parties should be commended in getting to an efficient Confirmation in a case that presented significant challenges at the outset,” reinforcing the effectiveness of coordinated execution.