1. COLL secured a $980 million credit facility maturing in 2030. 2. New terms significantly reduce annual interest rates from previous loans. 3. Funds will support general corporate purposes and future business development. 4. CFO emphasizes improved financial outlook and capital flexibility. 5. Interest rates will vary between SOFR plus 2.75% to 3.75%.
FAQ
Why Bullish?
The improved terms of new financing may positively influence investor perception, leading to potential stock price appreciation. Historical cases show similar debt restructures often enhance company valuations by reducing financial burdens.
How important is it?
The article details COLL's financial maneuver to lower debt costs, directly influencing future profitability and investor confidence, thereby affecting stock price.
Why Long Term?
COLL's capital structure improvement positions it well for sustainable growth, indicating long-term positive impacts. Previous examples, such as Biogen's financing restructuring, resulted in long-term stock price gains.
Collegium Pharmaceutical Closes $980 Million Syndicated Credit Facility
STOUGHTON, Mass., Dec. 30, 2025 (GLOBE NEWSWIRE) -- Collegium Pharmaceutical, Inc. (Nasdaq: COLL) has announced the successful closing of its inaugural syndicated credit facility, marking a significant milestone in the company's financing strategy. This new $980 million credit facility will mature in 2030 and comprises a blend of a $580 million Term Loan, a $300 million Delayed Draw Term Loan, and a $100 million revolving credit facility.
Details of the Credit Facility
The initial Term Loan of $580 million was utilized to settle approximately $581 million of the principal, effectively clearing the entire remaining balance of Collegium's prior $646 million term loan, which was secured through funds managed by Pharmakon Advisors, LP. The Delayed Draw Term Loan and revolving credit facility remain undrawn at the time of closing and are slated for general corporate purposes, including potential funding for future business development opportunities.
Strategic Implications of the New Financing
Collegium's Chief Financial Officer, Colleen Tupper, expressed enthusiasm about closing this credit facility, stating, “We are pleased to have successfully closed our inaugural syndicated credit facility which significantly improves our debt terms and underscores the strength of our financial outlook.” This financing not only enhances debt management but also provides the company with the flexibility needed to drive long-term value by exploring opportunities to expand and diversify its product portfolio.
Loans under the new credit facility will incur interest rates pegged to the Secured Overnight Financing Rate (SOFR), with a spread that varies based on Collegium’s First Lien Net Leverage Ratio, ranging from 2.75% to 3.75%. Upon closing, the interest rate was set at SOFR plus 2.75%, leading to expected annualized interest savings.
Key Financial Institutions Involved
Truist Bank served as the administrative agent for the credit facility. Several banks participated as joint bookrunners and lead arrangers, including:
- Truist Securities, Inc.
- Citizens Bank, N.A.
- MUFG Bank, Ltd.
- Fifth Third Bank, National Association
- The Huntington National Bank
- U.S. Bank National Association
Co-documentation agents for the syndicate included Flagstar Bank, N.A., PNC Bank, National Association, and Synovus Bank.
About Collegium Pharmaceutical, Inc.
Collegium is a leading, diversified biopharmaceutical company focused on improving the lives of individuals with serious medical conditions. The firm boasts a prominent portfolio of responsible pain management medications and is experiencing growth in its neuropsychiatry sector, driven by its product Jornay PM®, which offers a unique treatment approach for ADHD. Collegium is committed to growing its commercial portfolio and employing capital judiciously, emphasizing the strategic role of Jornay PM in its expansion plans.
To learn more about Collegium and its initiatives, visit the company's official website at www.collegiumpharma.com.
Forward-Looking Statements
This announcement contains forward-looking statements as defined under The Private Securities Litigation Reform Act of 1995. These statements may involve risks and uncertainties that could cause actual results to differ materially from future expectations. Factors that may affect actual outcomes include the company's operational and financial performance, risks associated with product commercialization, and regulatory compliance, among others.
Curious investors can direct inquiries to:
- Ian Karp, Head of Investor Relations: ir@collegiumpharma.com
- Danielle Jesse, Director of Investor Relations: ir@collegiumpharma.com