- Theratechnologies (TH) has announced a loan of up to US$100M from Marathon Asset Management
- The loan has an initial term of up to six years and bears interest at the Secured Overnight Financing Rate (SOFR) plus 9.50 per cent
- The company intends to allocate the funds to its clinical oncology pipeline and the growth of its EGRIFTA SV and Trogarzo brands
- Theratechnologies commercializes two medicines in HIV and has research programs in NASH, oncology and HIV
- Theratechnologies (TH) is up by 3.77 per cent trading at $2.75 per share
Theratechnologies (TH) has announced a loan of up to US$100M from Marathon Asset Management.
The non-dilutive, senior secured financing has an initial term of up to six years with an interest-only period of up to 36 months. It bears interest at the SOFR plus 9.50 per cent, subject to a SOFR floor of 1.00 per cent.
The financing is available in multiple tranches subject to certain milestones:
- US$40M on or before July 29, 2022
- US$20M through June 2023
- US$15M through March 2024
- An additional US$25M available until December 2024
The company will use the initial US$40M to retire US$30M of the principal amount of its convertible notes due in 2023.
It remains focused on revenue growth in North America, its core market.
“Through this non-dilutive facility, we have gained a strong partner and supporter in Marathon Asset Management,” said Paul Lévesque, President and CEO of Theratechnologies. “The term loan is a significant vote of confidence by a leading healthcare investor and serves to materially strengthen our ongoing execution capabilities. Our strategic priorities include the advancement of our clinical oncology pipeline, which is currently in a larger Phase 1b basket study, and the rapid growth of our existing marketed brands, EGRIFTA SV and Trogarzo.”
Theratechnologies commercializes two medicines in HIV and has research programs in NASH, oncology and HIV.
Theratechnologies (TH) is up by 3.77 per cent trading at $2.75 per share as of 9:32 am EST.