Knight Therapeutics closes $50M revolving credit facility

Knight Therapeutics (KHTRF) has entered into a revolving credit facility with National Bank of Canada. Knight has withdrawn C$60 million from the Credit Facility to fund a portion of the Paladin acquisition. The Credit Facility provides Knight with an initial borrowing limit of up to $50 million, which is mainly intended to support the Company’s growth strategy and may also be used for working capital and other corporate purposes. The revolving credit facility is secured, and has an initial term of 3 years, which can be extended annually by an additional one-year terms. In addition, NBC has launched a syndication process, and it is expected that the size of the credit facility will be increased to $100 million plus an accordion of $50M within the next 6 months. The credit facility can be drawn in USD or CAD at the SOFR or CORRA rate plus an applicable margin between 1.25% to 2.75% depending on Knight’s debt leverage. Knight will pay stand-by fees for the undisbursed portion of the credit facility. In addition, the Credit Facility includes certain customary financial and non-financial covenants that the Company must maintain over the period of the agreement.