Collegium Pharmaceutical, Inc. announced the closing of its inaugural syndicated credit facility totaling $980 million.
The facility, maturing in 2030, includes an initial Term Loan of $580 million, a $300 million Delayed Draw Term Loan, and a $100 million revolving credit facility.
The Credit Facility's improved terms reduce interest rates significantly and offer flexibility for future business endeavors.
Debt Refinancing
The new credit facility repaid $581 million of the previous $646 million term loan, enhancing debt terms and financial outlook.
Interest Rates
Loans under the facility will bear interest at SOFR plus a spread based on the Company's First Lien Net Leverage Ratio, resulting in an initial rate of SOFR plus 2.75%.
Capital Flexibility
The additional capital provides flexibility for long-term value creation and evaluating expansion opportunities.
- The reduced interest rate on the new Credit Facility is expected to lead to significant annualized interest savings.
- The favorable terms of the facility improve Collegium's financial outlook and strengthen its position for future growth and development.
Collegium's successful closure of the syndicated credit facility reflects strategic financial management and a commitment to enhancing shareholder value through optimized debt structures and strategic investments.