Knight Therapeutics Secures $50 Million Credit Facility for Growth and Acquisitions
- Knight Therapeutics Inc. secured a US$50 million credit facility to enhance growth and operational capabilities.
- The initial C$60 million drawdown partially finances the acquisition of Paladin, expanding Knight's portfolio in Latin America and Canada.
- The facility supports strategic acquisitions and aligns with Knight's long-term vision in the specialty pharmaceuticals sector.
Knight Therapeutics Secures Credit Facility to Boost Growth Strategy
Knight Therapeutics Inc., a Montreal-based specialty pharmaceutical company, announces the establishment of a US$50 million revolving credit facility with the National Bank of Canada (NBC). This strategic move is a pivotal aspect of Knight's efforts to enhance its operational capabilities and financial flexibility. The initial drawdown of C$60 million from the facility enables the company to partially finance its recent acquisition of Paladin, reinforcing its commitment to expanding its portfolio in the Latin American and Canadian markets.
The credit facility, structured with a secured initial term of three years, provides Knight with a robust financial tool that can be utilized for various corporate needs, including working capital and future acquisitions. NBC's plans to potentially increase the facility's limit to US$100 million, along with an additional US$50 million accordion feature, demonstrates confidence in Knight's growth trajectory. The flexibility to make withdrawals in both USD and CAD, along with interest rates linked to SOFR or CORRA rates, positions Knight favorably for managing its debt leverage while minimizing costs associated with funding.
Samira Sakhia, President and CEO of Knight, articulates that the credit facility significantly boosts the company’s operational strength, allowing Knight to pursue strategic acquisitions that align with its mission of developing and commercializing innovative pharmaceutical products. CFO Arvind Utchanah echoes this sentiment, expressing optimism about the partnership with NBC and the long-term benefits of optimizing Knight's capital structure. The facility not only facilitates immediate financial needs but also lays the groundwork for future growth, making it a crucial component of Knight's strategic planning.
In addition to enhancing financial flexibility, the credit facility aligns with Knight Therapeutics' long-term vision of becoming a leading player in the specialty pharmaceuticals sector. The company's focus on strategic acquisitions and expansion into new markets is set to benefit from this financial backing, as it navigates the complexities of the pharmaceutical landscape.
As Knight Therapeutics continues to build on its competitive advantages, the partnership with NBC underscores the importance of strong financial relationships in supporting the company's ambitious growth plans. The credit facility is a vital step in ensuring that Knight is well-positioned to capitalize on emerging opportunities in the healthcare market.