Knight Therapeutics, a pan-American (ex-US) specialty pharmaceutical company, has entered into a revolving credit facility, with National Bank of Canada (NBC).

Knight has withdrawn C$60 million from the Credit Facility to fund a portion of the Paladin acquisition.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 US$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 US$100 million plus an accordion of US$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.

“The Credit Facility allows us to leverage the strength of our operations as well as our balance sheet to ensure that we have the capacity to continue to transact and execute on our mission to acquire, in-license, develop, and commercialize pharmaceutical products in Latin America and Canada,” said Samira Sakhia, President and CEO of Knight Therapeutics Inc.

"We are pleased with this financial partnership with NBC. The facility is expected to be at least US$100 million and will optimize our capital structure. It provides us with the financial flexibility to pursue acquisition opportunities and ensures we have necessary funding to support the growth of our business,” said Arvind Utchanah, CFO of Knight Therapeutics Inc.