Theratechnologies Secures up to $75 Million in New Credit Facilities with TD Bank and Investissement Québec

Core Viewpoint - Theratechnologies Inc. has secured a $40 million three-year nondilutive, senior secured syndicated financing to optimize its capital structure and support its business development strategy, which is expected to free up approximately $19 million in cash by 2025 [1][2]. Financing Details - The new financing includes a $25 million senior secured term loan and a $15 million senior secured revolving facility, with an interest rate of SOFR plus 2.75%, significantly lower than the previous facility's rate of SOFR + 9.50% [2]. - The term loan will be amortized over seven years and matures on November 27, 2027, with $5 million already drawn from the revolving facility [2]. - Additionally, Investissement Québec will provide a $15 million second ranking secured subordinated term loan, with an interest rate currently set at US Government rates plus 7.23%, totaling 11.45% [3]. Financial Position - Post-financing, the company will have a total debt of $45 million and an estimated cash balance of approximately $20 million, resulting in a net debt position of about $25 million [4]. Strategic Implications - The financing is viewed as a critical milestone for the company's strategic focus on commercializing innovative therapies through business development deals and partnerships, enhancing profitability and strengthening the balance sheet for long-term growth [2].