Theratechnologies Secures up to $75 Million in New Credit Facilities with TD Bank and Investissement Québec
Theratechnologies has secured up to $75 million in new credit facilities through agreements with TD Bank and Investissement Québec (IQ). The financing includes a $40 million three-year senior secured syndicated financing from TD Bank, with a $20 million accordion feature, and a $15 million subordinated loan from IQ. The new financing, featuring more favorable interest rates, replaces the existing Marathon Asset Management facility. The TD Bank financing includes a $25 million secured term loan and $15 million revolving facility at SOFR plus 2.75%, while the IQ loan carries an 11.45% interest rate. This restructuring is expected to free up approximately $19 million in cash in 2025 for business development initiatives.
Theratechnologies ha ottenuto fino a 75 milioni di dollari in nuovi finanziamenti attraverso accordi con TD Bank e Investissement Québec (IQ). Il finanziamento include un prestito sindacato senior garantito di 40 milioni di dollari da TD Bank, con una caratteristica di accrescimento di 20 milioni di dollari, e un prestito subordinato di 15 milioni di dollari da IQ. Il nuovo finanziamento, con tassi di interesse più favorevoli, sostituisce la struttura esistente di Marathon Asset Management. Il finanziamento di TD Bank comprende un prestito a termine garantito di 25 milioni di dollari e una linea di credito revolving di 15 milioni di dollari a SOFR più 2,75%, mentre il prestito di IQ ha un tasso d'interesse dell'11,45%. Questa ristrutturazione dovrebbe liberare circa 19 milioni di dollari in contante nel 2025 per iniziative di sviluppo aziendale.
Theratechnologies ha asegurado hasta 75 millones de dólares en nuevas líneas de crédito a través de acuerdos con TD Bank e Investissement Québec (IQ). El financiamiento incluye un préstamo sindicado senior garantizado de 40 millones de dólares de TD Bank, con una opción de expansión de 20 millones de dólares, y un préstamo subordinado de 15 millones de dólares de IQ. Este nuevo financiamiento, que presenta tasas de interés más favorables, reemplaza la línea existente de Marathon Asset Management. El financiamiento de TD Bank incluye un préstamo a plazo garantizado de 25 millones de dólares y una línea de crédito revolvente de 15 millones de dólares a SOFR más 2,75%, mientras que el préstamo de IQ tiene una tasa de interés del 11,45%. Se espera que esta reestructuración libere aproximadamente 19 millones de dólares en efectivo en 2025 para iniciativas de desarrollo empresarial.
Theratechnologies는 TD Bank 및 Investissement Québec (IQ)와의 계약을 통해 최대 7500만 달러의 새로운 신용 시설을 확보했습니다. 이 금융에는 TD Bank로부터의 4천만 달러 규모의 3년 만기 선순위 담보 신디케이트 대출과 2000만 달러의 추가 조정 옵션, IQ로부터의 1500만 달러의 후순위 대출이 포함됩니다. 새로운 금융은 더 유리한 이자율을 특징으로 하며, 기존의 Marathon Asset Management 시설을 대체합니다. TD Bank 금융은 2500만 달러의 담보 정기 대출과 SOFR에 2.75%를 더한 1500만 달러의 회전 신용 시설을 포함하고, IQ 대출은 11.45%의 이자율을 갖습니다. 이 구조 조정은 2025년 비즈니스 개발 이니셔티브를 위해 약 1900만 달러의 현금을 확보할 것으로 예상됩니다.
Theratechnologies a obtenu jusqu'à 75 millions de dollars de nouvelles lignes de crédit grâce à des accords avec TD Bank et Investissement Québec (IQ). Le financement comprend un prêt syndiqué senior garanti de 40 millions de dollars de TD Bank, avec une option d'augmentation de 20 millions de dollars, et un prêt subordonné de 15 millions de dollars de IQ. Ce nouveau financement, qui présente des taux d'intérêt plus favorables, remplace l'installation existante de Marathon Asset Management. Le financement de TD Bank comprend un prêt à terme garanti de 25 millions de dollars et une facilité de crédit revolving de 15 millions de dollars à SOFR plus 2,75 %, tandis que le prêt d'IQ porte un taux d'intérêt de 11,45 %. Cette restructuration devrait libérer environ 19 millions de dollars en liquidités en 2025 pour des initiatives de développement commercial.
Theratechnologies hat bis zu 75 Millionen Dollar an neuen Kreditlinien durch Vereinbarungen mit der TD Bank und Investissement Québec (IQ) gesichert. Die Finanzierung umfasst eine dreijährige, senior gesicherte syndizierte Finanzierung von 40 Millionen Dollar von der TD Bank, mit einer 20 Millionen Dollar großen Abrufoption, sowie ein nachrangiges Darlehen über 15 Millionen Dollar von IQ. Die neue Finanzierung, die günstigere Zinssätze bietet, ersetzt die bestehende Finanzierung durch Marathon Asset Management. Die TD Bank-Finanzierung umfasst ein gesichertes Termingeld über 25 Millionen Dollar und eine revolvierende Kreditlinie über 15 Millionen Dollar zu SOFR plus 2,75 %, während das IQ-Darlehen einen Zinssatz von 11,45 % hat. Diese Umstrukturierung wird voraussichtlich etwa 19 Millionen Dollar an Bargeld im Jahr 2025 für Unternehmensentwicklungsinitiativen freisetzen.
- Secured up to $75M in new credit facilities at more favorable interest rates
- Interest rate reduced from SOFR + 9.50% to SOFR + 2.75% on TD Bank facility
- Expected to free up $19M in cash in 2025 for business development
- Flexible structure with $20M accordion feature for potential expansion
- Total debt position of $45M
- Net debt position of approximately $25M after financing
Insights
This refinancing deal marks a significant improvement in Theratechnologies' capital structure. The new
The deal provides immediate benefits:
- Lower interest expense will enhance profitability
- Seven-year amortization schedule frees up
$19M in 2025 - Accordion feature allows flexibility to increase facility to
$60M
- New financing replaces existing credit facility to optimize Company’s capital structure
- Favorable interest rates and amortization schedules to free up approximately
$19 million in cash in 2025 to support business development strategy
MONTREAL, Dec. 02, 2024 (GLOBE NEWSWIRE) -- Theratechnologies Inc. (“Theratechnologies” or the “Company”) (TSX: TH) (NASDAQ: THTX), a biopharmaceutical company focused on the development and commercialization of innovative therapies, today announced that it has closed on a
“This transaction represents a critical milestone for the Company’s strategic focus on the commercialization of innovative therapies through business development deals and partnerships,” said Philippe Dubuc, Senior Vice President and Chief Financial Officer at Theratechnologies. “The new facility’s favorable rates and terms provide us with meaningful financial flexibility to execute on our acquisition strategy at substantially lower costs. The flexible structure fully aligns with our strategic objectives of continuing to enhance profitability and strengthen our balance sheet to fuel long-term growth and sustainability.”
Key highlights of the TD Bank Financing include:
$25 million senior secured term loan and a$15 million senior secured revolving facility; each with interest on a floating rate (SOFR) plus a margin based on the Company’s total net debt-to-Adjusted EBITDA ratio.- At closing, the interest rate will be SOFR plus
2.75% . This rate compares favorably to the Company’s previous credit facility, which carried an interest rate of SOFR +9.50% . - The TD Bank term loan will be amortized over a seven-year period, and will mature on November 27, 2027.
- The Company has drawn
$5 million on the revolving facility.
Key highlights of the IQ Subordinated Loan include:
- A
$15 million second ranking secured subordinated term loan with interest based on US Government rates plus a margin based on the Company’s total net debt-to-Adjusted EBITDA ratio. - The interest rate is currently set at US Government rates plus
7.23% , or11.45% . - The loan will be interest-only and be subject to full repayment after 42 months.
After giving effect to the financing, the Company will have
About Theratechnologies
Theratechnologies (TSX: TH) (NASDAQ: THTX) is a biopharmaceutical company focused on the development and commercialization of innovative therapies addressing unmet medical needs. Further information about Theratechnologies is available on the Company's website at www.theratech.com, on SEDAR+ at www.sedarplus.ca and on EDGAR at www.sec.gov. Follow Theratechnologies on Linkedin and X (Twitter).
Forward-Looking Information
This press release contains forward-looking statements and forward-looking information (collectively, the “Forward-Looking Statements”) within the meaning of applicable securities laws, that are based on management’s beliefs and assumptions and on information currently available to it. You can identify forward-looking statements by terms such as “may”, “will”, “should”, “could”, “promising”, “would”, “outlook”, “believe”, “plan”, “envisage”, “anticipate”, “expect” and “estimate”, or the negatives of these terms, or variations of them. The Forward-Looking Statements contained in this press release include, but are not limited to, statements regarding: (i) the use of the net proceeds from the TD Bank Financing and IQ Subordinated Loan; (ii) the acquisition strategy of the Company; and (iii) the Company’s profitability and its long-term growth and sustainability. Although the Forward-Looking Statements contained in this press release are based upon what the Company believes are reasonable assumptions in light of the information currently available, investors are cautioned against placing undue reliance on these statements since actual results may vary from the Forward-Looking Statements contained in this press release. Certain assumptions made in preparing the Forward-Looking Statements include that: (i) the TD Bank Financing and IQ Subordinated Loan will help the Company making product acquisitions; and (ii) the terms of the TD Bank Financing and IQ Subordinated Loan will be less onerous to the Company than the terms under its credit agreement with Marathon.
Forward-Looking Statements assumptions are subject to a number of risks and uncertainties, many of which are beyond the Company’s control, that could cause actual results to differ materially from those that are disclosed in or implied by such Forward-Looking Statements. These risks and uncertainties include, but are not limited to: (i) the occurrence of a default under the TD Bank Financing and/or the IQ Subordinated Loan; (ii) the right by any of TD Bank or IQ to foreclose on the assets of the Company if a default occurs; and (iii) the inability of the Company to execute on its strategy to acquire additional products as a result of various factors, including types of products available, synergies with the other products of the Company, or the lack thereof, pricing and terms of agreement.
The Company refers current and potential investors to the “Risk Factors” section of the Company’s annual information form filed under Form 20-F dated February 21, 2024 available on SEDAR+ at www.sedarplus.ca and on EDGAR at www.sec.gov under Theratechnologies’ public filings. The reader is cautioned to consider these and other risks and uncertainties carefully and not to put undue reliance on forward-looking statements. Forward-Looking Statements reflect current expectations regarding future events and speak only as of the date of this press release and represent the Company’s expectations as of that date.
The Company undertakes no obligation to update or revise the information contained in this press release, whether as a result of new information, future events or circumstances or otherwise, except as may be required by applicable law.
Contacts:
Investor Inquiries:
Philippe Dubuc
Senior Vice President and Chief Financial Officer
pdubuc@theratech.com
438-315-6608
Media inquiries:
Julie Schneiderman
Senior Director, Communications & Corporate Affairs
communications@theratech.com
1-514-336-7800
FAQ
What is the total value of Theratechnologies (THTX) new credit facilities in December 2024?
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