Knight Therapeutics, a Pan-American specialty pharmaceutical company, closed a five-year, $38.5 million secured loan denominated in select Latin American currencies with the International Finance Corporation (IFC), a member of the World Bank Group focused on the private sector in emerging markets.
The IFC loan is denominated in Brazilian Real, Colombian Peso, Chilean Peso and Mexican Peso, with the Brazilian Real tranche representing approximately 50% of the loan and the balance split among the rest of the currencies. The IFC loan maturity date is on Oct. 15, 2027, with principal repayments starting on Oct. 15, 2023. Furthermore, the loan has customary covenants and is secured by select assets of Knight including a cash collateral of 35% of the principal outstanding.
“We are pleased with the financial flexibility provided through this partnership with IFC,” Arvind Utchanah, CFO of Knight Therapeutics, said. “The loan, coupled with Knight’s existing cash position, further strengthens our balance sheet while providing a natural hedge against future currency depreciation in the key markets in which we operate.”
