THTX - Theratechnologies Announces Agreement in Principle with Marathon to Amend Some of the Terms and Conditions of its Loan Facility | Benzinga
- Removal of Minimum Liquidity Covenant of US$30 Million if F8 Formulation of Tesamorelin is Not Approved by the FDA by March 31, 2024
- Minimum Liquidity Covenant to Decrease Over Time to a Minimum of US$15 million from US$20 Million Based on Attainment of Targeted Adjusted EBITDA
- Quarterly Revenue Target To Be replaced by an Adjusted EBITDA Target
- Deletion of Prohibition to Have a Going Concern Note in the Annual Report of the Company's Auditors
This news release constitutes a "designated news release" for the purposes of the Company's prospectus supplement dated December 16, 2021 to its short form base shelf prospectus dated December 14, 2021.
MONTREAL, Sept. 25, 2023 (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 reached an agreement in principle to amend some of the terms and conditions of its credit agreement dated July 20, 2022, as amended from time to time (the "Loan Facility"), with certain funds and accounts for which Marathon Asset Management, L.P. acts as investment manager (collectively, "Marathon").
The Company and Marathon agreed in principle to make the following amendments to the terms and conditions of the Loan Facility:
- to remove the obligation to maintain at all times liquidity in the amount of US$30 million if the F8 formulation of tesamorelin is not approved by the United States Food and Drug Administration ("FDA") by March 31, 2024;
- to decrease the minimum liquidity requirements over time to a minimum of US$15 million from US$20 million based on targeted last twelve months adjusted EBITDA;
- to move to an adjusted EBITDA-based target from a quarterly revenue-based target beginning with the quarter ending November 30, 2023; and
- to delete from the Loan Facility the prohibition for the Company to have a going concern explanatory paragraph in the annual report of the independent registered public accounting firm of the Company.
In consideration of the proposed amendments, the Company has agreed to ...