Collegium Pharmaceutical closed its inaugural syndicated credit facility. The new aggregate $980 million credit facility will mature in 2030 and consists of a $580 million initial term loan, $300 million delayed draw term loan, and $100 million revolving credit facility. The initial term loan was used to repay approximately $581 million of principal representing the entire remaining balance of the company’s previous $646 million term loan secured from funds managed by Pharmakon Advisors. The delayed draw term loan and revolving credit facility, both of which were undrawn at the time of closing, are expected to be used for general corporate purposes, including to partially fund future business development opportunities.
“We are pleased to have successfully closed our inaugural syndicated credit facility which significantly improves our debt terms and underscores the strength of our financial outlook,” Colleen Tupper, chief financial officer of Collegium, said. “This additional capital also provides us with flexibility to further drive long-term value as we continue to evaluate opportunities to expand and diversify our product portfolio through business development.”
Loans under the credit facility will bear interest at an annual rate equal to the term Secured Overnight Financing Rate (SOFR) plus a spread based on the company’s first lien net leverage ratio (as defined in the credit agreement) ranging from 2.75% to 3.75%. The interest rate upon closing was SOFR plus 2.75%. The reduced rate on the new credit facility is expected to result in meaningful annualized interest savings.
Truist Bank acted as administrative agent. Truist Securities, Citizens Bank, MUFG Bank, Fifth Third Bank, The Huntington National Bank and U.S. Bank served as joint bookrunners and joint lead arrangers for the syndicate of banks and Flagstar Bank, PNC Bank and Synovus Bank served as co-documentation agents.
