HLS Therapeutics Announces New Credit Agreement
National Bank serves as administrative agent and lead arranger, with the Toronto-Dominion Bank, Royal Bank of Canada, and Innovation Federal Credit Union as syndicate members. The Agreement replaced HLS's credit facility with JP Morgan Chase Bank, N.A. which had a maturity date of August 11, 2026. On closing, the proceeds from the new term facility were used to repay the Company's existing credit agreement in full. The new Agreement has a maturity date of August 19, 2029.
The Agreement consists of a CAD $79 million term credit facility, a CAD $14 million delayed draw facility and a CAD $14 million revolving credit facility. In addition, HLS can increase facilities further through an uncommitted CAD $40 million accordion facility (subject to Lender agreement).
Interest on the Agreement accrues at a rate per month equal to the sum of the Canadian Overnight Repo Rate Average ("CORRA") plus a range of 2.25% to 3.50% depending on the leverage ratio of the Company at the time. Interest rate spreads are 25-50 basis points below the rate in the Company's prior credit agreement, providing improved cash flow through reduced interest expense.
The debt is denominated in Canadian dollars, creating a natural currency hedge against the Company's predominantly Canadian operations. In addition to the interest rate spread savings detailed above, HLS will achieve further interest rate savings in excess of 100 basis points based on current market interest rates, as a result of the differential between US dollar and Canadian dollar base rates.
"We are pleased to finalize this new credit agreement with National Bank and our syndicate partners, which reflects their confidence in our outlook," said John Hanna, CFO of HLS Therapeutics. "The Agreement delivers improved terms that reflect our strengthened financial position and provides enhanced financial flexibility and cash flow to pursue our capital allocation priorities such as share buybacks and portfolio expansion."
ABOUT HLS THERAPEUTICS INC.
Formed in 2015, HLS is a pharmaceutical company focused on the acquisition and commercialization of late-stage development, commercial stage promoted and established branded pharmaceutical products in the North American markets. HLS's focus is on products targeting the central nervous system and cardiovascular therapeutic areas. HLS's management team is composed of seasoned pharmaceutical executives with a strong track record of success in these therapeutic areas and at managing products in each of these lifecycle stages. For more information visit: www.hlstherapeutics.com
FORWARD LOOKING INFORMATION
This release includes forward-looking statements regarding HLS and its business. Such statements are based on the current expectations and views of future events of HLS's management. In some cases the forward-looking statements can be identified by words or phrases such as "may", "will", "expect", "plan", "anticipate", "intend", "potential", "estimate", "believe" or the negative of these terms, or other similar expressions intended to identify forward-looking statements, including, among others, statements with respect to HLS's pursuit of additional product and pipeline opportunities in certain therapeutic markets, statements regarding growth opportunities and expectations regarding financial performance. The forward-looking events and circumstances discussed in this release may not occur and could differ materially as a result of known and unknown risk factors and uncertainties affecting HLS, including risks relating to the specialty pharmaceutical industry, risks related to the regulatory approval process, economic factors and many other factors beyond the control of HLS. Forward-looking statements and information by their nature are based on assumptions and involve known and unknown risks, uncertainties and other factors which may cause HLS's actual results, performance or achievements, or industry results, to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statement or information. Accordingly, readers should not place undue reliance on any forward-looking statements or information. A discussion of the material risks and assumptions associated with this release can be found in the Company's Annual Information Form dated March 12, 2025, and Management's Discussion and Analysis dated August 13, 2025, both of which have been filed on SEDAR+ and can be accessed at www.sedarplus.ca. Accordingly, readers should not place undue reliance on any forward-looking statements or information. Except as required by applicable securities laws, forward-looking statements speak only as of the date on which they are made and HLS undertakes no obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future events, or otherwise.
SOURCE HLS Therapeutics Inc.
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