Theratechnologies Announces Closing of Funding of $40 Million Under the Terms of its Credit Agreement
28 Juli 2022 - 12:47AM
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 received funding of $40 million under
the terms of its credit agreement with affiliated funds of Marathon
Asset Management. All dollar amounts are expressed in U.S. dollars,
unless otherwise stated.
This initial amount will be used to purchase $30
million of the principal amount of the convertible notes due June
2023 (the “Notes”). The purchase of the Notes is expected to occur
on or about July 29, 2022.
On July 13, 2022, the Company announced that it
entered into a binding commitment letter for a non-dilutive term
loan of up to $100 million with affiliated funds of Marathon Asset
Management. This credit facility is available to Theratechnologies
in four various tranches with today’s first tranche of $40 million
having been drawn down and funded. The credit agreement is
available on SEDAR at www.sedar.com and on EDGAR at www.sec.gov
under Theratechnologies’ filings.
About Theratechnologies
Theratechnologies (TSX: TH) (NASDAQ: THTX) is a biopharmaceutical
company focused on the development and commercialization of
innovative therapies addressing unmet medical needs. Further
information about Theratechnologies is available on the Company's
website at www.theratech.com, on SEDAR at www.sedar.com and on
EDGAR at www.sec.gov.
Forward-Looking InformationThis press release
contains forward-looking statements and forward-looking
information, or, collectively, forward-looking statements, within
the meaning of applicable securities laws, that are based on our
management’s beliefs and assumptions and on information currently
available to our management. You can identify forward-looking
statements by terms such as "may", "will", "should", "could",
“promising”, “would”, "outlook", "believe", "plan", "envisage",
"anticipate", "expect" and "estimate", or the negatives of these
terms, or variations of them. The forward-looking statements
contained in this press release include, but are not limited to,
statements regarding the availability of the term loan and the
timelines for the purchase of the Notes.
Although the
forward-looking information contained in this press release is
based upon what the Company believes are reasonable assumptions in
light of the information currently available, investors are
cautioned against placing undue reliance on this information since
actual results may vary from the forward-looking information.
Certain assumptions made in preparing the forward-looking
statements include that: the Company will meet all of the terms and
conditions of the credit agreement to draw down the remaining
tranches of the term loan; the Company will not be in default under
the terms of the loan facility; sales of EGRIFTA SV® and Trogarzo®
in the United States will continue increasing over time; and the
purchase of the Notes will occur on the date set forth in this
press release.
Forward-looking
information assumptions are subject to a number of risks and
uncertainties, many of which are beyond Theratechnologies’ control
that could cause actual results to differ materially from those
that are disclosed in or implied by such forward-looking
information. These risks and uncertainties include, but are not
limited to, those related to or arising from: non-compliance by the
Company with the terms and conditions of the term loan; the
occurrence of an event of default under the term loan triggering
the accelerated reimbursement of any outstanding drawn down
amounts; the Company failing its sales efforts and sales
initiatives; and a delay in purchasing the Notes as per the
timelines set forth in this press release resulting in a higher
purchase price.
We refer current and
potential investors to the “Risk Factors” section of our Annual
Information Form dated February 23, 2022 available on SEDAR at
www.sedar.com and on EDGAR at www.sec.gov as an exhibit to our
report on Form 40-F dated February 24, 2022 under
Theratechnologies’ public filings. The reader is cautioned to
consider these and other risks and uncertainties carefully and not
to put undue reliance on forward-looking statements.
Forward-looking statements reflect current expectations regarding
future events and speak only as of the date of this press release
and represent our expectations as of that date.
We undertake no obligation to update or revise
the information contained in this press release, whether as a
result of new information, future events or circumstances or
otherwise, except as may be required by applicable law.
Investor Contact:Elif McDonald
Senior Director, Investor Relations ir@theratech.com
438-315-8563
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