Theratechnologies Inc T.TH

Alternate Symbol(s): THTX

Healthcare Biotechnology

Theratechnologies Inc. is a Canada-based clinical-stage biopharmaceutical company. The Company is focused on the development and commercialization of therapies addressing unmet medical needs. It markets prescription products for people with human immunodeficiency viruses (HIV) in the United States. The Company's research pipeline focuses on specialized therapies addressing unmet medical needs in HIV, nonalcoholic steatohepatitis (NASH) and oncology. Its medicines include Trogarzo and EGRIFTA SV (tesamorelin for injection). Trogarzo (ibalizumab-uiyk) injection is a long-acting monoclonal antibody which binds to domain 2 of the CD4 T cell receptors. It blocks viral entry into host cells while preserving normal immunologic function. The Company is also investigating an intramuscular method of administration of Trogarzo. EGRIFTA SV (tesamorelin for injection) is approved in the United States for the reduction of excess abdominal fat in people with HIV who have lipodystrophy.

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Theratechnologies Inc > Milestones for drawing of tranches in term loan

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Comment by SPCEO1on Jul 18, 2022 9:22am

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Post# 34830946

RE:Milestones for drawing of tranches in term loan

So, as of the second quarter, the last twelve months of sales was $74.4 million or just shy of the $75 million requirement. It should be pretty easy to meet the requirement for the next $20 million tranche as sales have been trending up,Q3 is already halfway done and Bloomberg does not indicate anything bad happening on sales and the quarter rolling off once Q3 is reported is the lowest one. Just replacing it with a normal number will put them over the top. It will be interesting to see if TH takes that $20 million as soon as they are eligible as they may not want to risk anything going too weird on them with Egrifta sales in 4Q22 or 1Q23 or 2Q23.

palinc2000 wrote:

Term Loan Financing

Subsequent to the end of the second quarter, the Company announced it received a binding commitment letter with respect to a non-dilutive term loan with Marathon Asset Management for up to $100,000 (the “Loan Facility”). Highlights of the agreement are as follows:

• Senior secured term loan of up to $100,000 across four tranches;

• $40,000 is expected to be funded before July 29, 2022 (“Tranche 1 Loan”);

• $20,000 to be made available by no later than June 30, 2023, if the Company has

filed with the FDA its sBLA for the EGRIFTA SV® human factor study and has had net revenues of at least $75,000 for the 12-month period immediately preceding the funding of the tranche (“Tranche 2 Loan”);

• $15,000 to be made available by no later than March 2024 if the Company has obtained approval from the FDA for its F8 formulation of tesamorelin and has had net revenues of at least $90,000 for the 12-month period immediately preceding the funding of the tranche (“Tranche 3 Loan”);

• Up to an additional $25,000 to be made available no later than December 31, 2024, if the Company has had at least $110,000 in net revenues for the 12-month period immediately preceding the funding of the tranche and at least $20,000 in EBITDA (as defined in the Credit Agreement) (“Tranche 4 Loan”);

• The facility will have an initial term of five years (six years if Tranche 3 is drawn), provide for an interest-only period of 24 months (36 months if Tranche 3 is drawn), and bear interest at the Secured Overnight Financing Rate (SOFR) plus 9.5%;

• The proceeds from the Tranche 1 Loan shall be used to purchase $30,000 principal amount of issued and outstanding convertible unsecured senior notes and the proceeds of the Tranche 2 Loan shall be used to reimburse the remaining issued and outstanding Convertible Notes at maturity; and,

• The proceeds of both the Tranche 3 Loan and Tranche 4 Loan can be us