- Term is extended, borrowing capacity increases, financial
flexibility improves, and interest rates remain relatively
unchanged.
TORONTO, Aug. 14,
2023 /CNW/ - HLS Therapeutics Inc. ("HLS" or the
"Company") (TSX: HLS), a pharmaceutical company focusing on central
nervous system and cardiovascular markets, announces an extension
to its credit agreement, senior secured term loan, revolver
facility and expansion facility (the "Amended Agreement") with a
syndicate of leading bank lenders (the "Syndicate") led by JPMorgan
Chase Bank as Admin Agent and
Arranger, and TD Bank, as Documentation Agent, and that also
includes National Bank of Canada,
Canadian Western Bank, Royal Bank of Canada and ICICI Bank Canada. All dollar
amounts are stated in U.S. currency.
Under the terms of the Amended Agreement, the maturity date has
been extended to August 11, 2026. In
addition, total borrowing capacity increases. The remaining debt
drawn on the prior revolving facility to fund a $10 million regulatory approval milestone in 2022
is being combined with the principal amount remaining on the
secured term loan for a new senior secured term loan balance of
$93.8 million at the time of closing
of the Amended Agreement. In addition, there is a new revolving
facility of $30.0 million and an
expansion facility of up to $70.0
million through which the Company can access incremental
loans to support growth opportunities. Finally, interest rates
under the Amended Agreement are essentially unchanged at Adjusted
SOFR +2.75% to +4.25%, depending on the net leverage of the Company
over time.
"We'd like to thank JPMorgan and the entire syndicate for their
ongoing support and collaboration, and we are pleased to welcome TD
Bank and Canadian Western Bank as two new members of the lending
group bringing additional diversification and expanded financial
capacity," said Tim Hendrickson, CFO
at HLS. "The Amended Agreement enhances our already strong
financial position with an extended term, increased borrowing
capacity, and greater financial flexibility to pursue growth
opportunities and other value creation initiatives, such as our
share buyback."
Under the terms of the Amended Agreement, the Company is
required to comply with similar financial covenants related to the
maintenance of liquidity and coverage ratios as before and the
lenders continue to have security over substantially all the assets
of the Company. The Company may also be required to make additional
payments from surplus cash-flow, or the Company could choose to
repay some or all of the amount outstanding at any time during the
term without penalty.
ABOUT HLS THERAPEUTICS
INC.
Formed in 2015, HLS is a pharmaceutical company focused on the
acquisition and commercialization of late-stage development,
commercial stage promoted and established branded pharmaceutical
products in the North American markets. HLS's focus is on products
targeting the central nervous system and cardiovascular therapeutic
areas. HLS's management team is composed of seasoned pharmaceutical
executives with a strong track record of success in these
therapeutic areas and at managing products in each of these
lifecycle stages. For more information visit:
www.hlstherapeutics.com
FORWARD LOOKING
INFORMATION
This release includes forward-looking statements regarding
HLS and its business. Such statements are based on the current
expectations and views of future events of HLS's management. In
some cases, the forward-looking statements can be identified by
words or phrases such as "may", "will", "expect", "plan",
"anticipate", "intend", "potential", "estimate", "believe" or the
negative of these terms, or other similar expressions intended to
identify forward-looking statements, including, among others,
statements with respect to the composition of HLS's board of
directors. The forward-looking events and circumstances discussed
in this release may not occur and could differ materially as a
result of known and unknown risk factors and uncertainties
affecting HLS, including risks relating to the specialty
pharmaceutical industry, risks related to the regulatory approval
process, economic factors and many other factors beyond the control
of HLS. Forward-looking statements and information by their nature
are based on assumptions and involve known and unknown risks,
uncertainties and other factors which may cause HLS's actual
results, performance or achievements, or industry results, to be
materially different from any future results, performance or
achievements expressed or implied by such forward-looking statement
or information. Accordingly, readers should not place undue
reliance on any forward-looking statements or information. A
discussion of the material risks and assumptions associated with
this release can be found in the Company's Annual Information Form
dated March 15, 2023, and
Management's Discussion and Analysis dated August 9, 2023, both of which have been filed on
SEDAR+ and can be accessed at www.sedarplus.ca. Accordingly,
readers should not place undue reliance on any forward-looking
statements or information. Except as required by applicable
securities laws, forward-looking statements speak only as of the
date on which they are made and HLS undertakes no obligation to
publicly update or revise any forward-looking statement, whether as
a result of new information, future events, or otherwise.
SOURCE HLS Therapeutics Inc.