Knight Announces Closing of US$100 Million Revolving Credit Facility

Executive Summary

• Knight Therapeutics closed the syndication of a US$100 million secured revolving credit facility, doubling its borrowing capacity from US$50 M to US$100 M with an additional US$100 M accordion feature.
• The new consortium adds Citibank N.A., CIBC, and TD to the existing lead arranger National Bank of Canada; the facility matures on June 17 2028 with annual extensions possible.
• Proceeds are intended to fund growth initiatives, acquisitions (including support for the Paladin acquisition) and working‑capital needs, enhancing financial flexibility.

Key Details

• Facility Size: US$100 million revolving credit facility; accordion option for an additional US$100 million subject to lender acceptance.
• Consortium Composition: National Bank of Canada (Lead Arranger), Citibank N.A., Canadian Imperial Bank of Commerce, The Toronto‑Dominion Bank.
• Maturity & Extension: Initial maturity June 17 2028; can be extended annually by one‑year periods.
• Pricing Terms: Borrowings priced at SOFR or CORRA + margin ranging from 1.25% to 2.75%, dependent on Knight’s debt leverage.
• Fees: Stand‑by fees applicable on undisbursed portion of the facility.
• Covenants: Includes customary financial and non‑financial covenants that must be maintained throughout the term.
• Prior Drawdown: In June 2025, C$60 million was drawn to fund part of the Paladin acquisition.
• Purpose: To support growth strategy, acquisitions, working capital, and other corporate purposes.

Notable Quotes

“This credit facility strengthens our relationship with four banks and doubles our borrowing capacity from US$50M to US$100M, with an additional US$100M 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 Inc.