Theratechnologies Secures up to $75 Million in New Credit Facilities with TD Bank and Investissement Québec
Summary
Favorable interest rates and amortization schedules to free up approximately $19 million in cash in 2025 to support business development strategyMONTREAL, 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 $40 million three-year non-dilutive, senior secured syndicated financing with TD Bank, as agent (TD Bank Financing). All amounts are in US dollars unless otherwise stated.This transaction represents a critical milestone for the Companys 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 facilitys 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. 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 $45 million in debt, with an estimated cash balance as at November 30, 2024 of approximately $20 million, for a net debt position of approximately $25 million.Theratechnologies (TSX: TH) (NASDAQ: THTX) is a biopharmaceutical company focused on the development and commercialization of innovative therapies addressing unmet medical needs.