THTX - Theratechnologies Announces Finalization of Amendments to Some of the Terms and Conditions of its Credit Agreement with Marathon | Benzinga
- Revised the Minimum Liquidity Covenant for All Times Following October 31, 2023 to be Between US$15 Million and US$20 Million
- Minimum Quarterly Revenue Covenant Replaced with Minimum Adjusted EBITDA Covenant
- Deleted Prohibition Against Having a Going Concern Note in the Opinion of the Company's Auditors that Accompanies the Company's Annual Report
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, Oct. 16, 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 finalized all documentation giving effect to the amendments to certain of the terms and conditions of its credit agreement dated July 20, 2022, as amended from time to time (the "Credit Agreement"), with certain funds and accounts for which Marathon Asset Management, L.P. acts as investment manager (collectively, "Marathon").
The amendments to the Credit Agreement provide for, inter alia:
- revising the minimum liquidity requirements for all times following October 31, 2023 to be between US$15 million and US$20 million, based on thresholds for adjusted EBITDA over the most recently ended four fiscal quarters;
- revising the minimum revenue requirements to be based on adjusted EBITDA-based targets instead of quarterly revenue-based targets, beginning with the quarter ending November 30, 2023;
- deleting the prohibition against the Company having a going concern explanatory paragraph in the opinion of the independent registered public accounting firm of the Company that accompanies the Company's annual report.
As disclosed in its September 25, 2023, press release, in consideration of ...