Heron Therapeutics, a commercial-stage biotechnology company, announced the completion of a comprehensive capital restructuring designed to enhance the Company's financial flexibility, reduce total debt, and support long-term growth.
The multi-faceted refinancing transaction consisted of the following key components:
- A new senior credit facility with Hercules Capital due in 2030, which provides $110.0 million in committed capital at closing and an additional $40.0 million in two $20.0 million tranches available upon achievement of certain milestones, to be drawn at the Company's discretion;
- An exchange agreement with the existing holder of Heron's 1.5% senior convertible notes due 2026 to retire outstanding principal, including repayment of approximately $125.0 million in cash and conversion of $25.0 million into common stock;
- Issuance and sale of $35.0 million of new 5.0% senior convertible notes due 2031; and
- A private placement with select investors for $27.7 million in gross proceeds through the issuance of common and preferred equity.
The proceeds from the refinancing were used to retire prior convertible notes and Heron's working capital facility, while also providing additional working capital to support the Company's commercial and development initiatives.
"We've worked diligently to streamline our capital structure and position Heron for growth," said Craig Collard, Chief Executive Officer of Heron. "This refinancing strengthens our balance sheet, eliminates near-term debt maturities, and supports our commercial execution and pipeline priorities moving forward."
The refinancing transactions were entered into concurrently on August 8, 2025 and are expected to close concurrently on August 12, 2025.
Leerink Partners served as exclusive financial advisor and placement agent and DLA Piper LLP (US) served as legal advisor to Heron.