- Theratechnologies ( NASDAQ: THTX ) shares climbed around 5% on Wednesday after the biopharmaceutical company received a binding commitment from an affiliate of Marathon Asset Management for a non-dilutive term loan of up to $100M.
- Available across multiple tranches, the term loan will significantly strengthen the firm's balance sheet and extend cash runway.
- The initial draw of $40M (Tranche 1), expected to be funded on or before July 29, 2022, will retire $30M of the principal amount of the convertible notes due in 2023.
- Subject to the satisfaction of defined milestones, $20M will be made available through June 2023 (Tranche 2); $15M will be made available through Mar. 2024 (Tranche 3); and an additional $25M will be available until Dec. 2024.
- The facility will initially have a 5-year term (six years if Tranche 3 is drawn). It will provide for an interest-only period of 24 months (36 months if Tranche 3 is drawn prior to Dec. 31, 2023) and bear interest at the SOFR plus 9.50.
For further details see:
Theratechnologies stock gains on securing $100M term loan