Knight Therapeutics closes revolving credit facility

Executive Summary

• Knight Therapeutics closed a $100 million U.S. secured revolving credit facility, doubling its borrowing capacity and adding an accordion option for another $100 million.
• The facility is led by National Bank of Canada with participation from Citibank N.A., Canadian Imperial Bank of Commerce, and Toronto‑Dominion Bank; it matures on June 17 2028 with annual extensions available.
• Proceeds are intended to fund growth initiatives, acquisitions (including the prior $60 million draw for the Paladin acquisition), working capital, and other corporate purposes.

Key Details

• Facility Size: Increased from $50 million to $100 million U.S.; includes an accordion feature for an additional $100 million U.S., subject to lender acceptance.
• Lead Arranger: National Bank of Canada (NBC); syndicate now comprises NBC, Citibank N.A., Canadian Imperial Bank of Commerce, and Toronto‑Dominion Bank.
• Maturity & Extension: Initial maturity June 17 2028; can be extended annually by one‑year periods.
• Pricing: Borrowings priced at SOFR (U.S.) or CORRA (CAD) plus a margin of 1.25%–2.75%, dependent on Knight’s leverage ratios.
• Fees: Standby fees applicable on undrawn portions of the facility.
• Covenants: Standard financial and non‑financial covenants required throughout the term.
• Prior Draw: In June 2025, Knight withdrew C$60 million to finance part of its Paladin acquisition.
• Purpose: Provides liquidity for growth strategy, acquisitions, working capital, and other corporate uses.

Notable Quotes

“We are pleased to partner with NBC and the syndicate of lenders. This credit facility strengthens our relationship with four banks and doubles our borrowing capacity from $50 million (U.S.) to $100 million (U.S.), with an additional $100 million (U.S.) accordion feature. The financial flexibility of this partnership positions us well for acquisitions, as well as supports the growth of our business,” – Arvind Utchanah, Chief Financial Officer, Knight Therapeutics.