Business
HLS Therapeutics Announces New Credit Agreement
HLS Therapeutics Inc. ("HLS" or the "Company") (TSX: HLS), a pharmaceutical company focusing on addressing unmet needs in the treatment of psychiatric disorders and cardiovascular disease, announces that the company has entered into a new Credit Agreement (the "Agreement") with National Bank of Canada ("National Bank") as administrative agent which provides for committed credit facilities denominated in Canadian dollars of up to CAD $107 million (USD ~$77.5 million).
About this update from National Bank Of Canada
[{"type":"list","items":[{"val":[{"type":"text","content":"CAD $79 million term loan replaces USD $56 million term loan","length":60,"tagName":"p"}]},{"val":[{"type":"text","content":"CAD $107 million (~USD $77.5 million) total facility provides enhanced financial flexibility ","length":92,"tagName":"p"}]},{"val":[{"type":"text","content":"CAD-denominated facility reduces FX exposure and lowers interest rate","length":74,"tagName":"p"}]}],"tagName":"ul","bulletedList":true,"length":226,"olType":false},{"type":"text","content":"TORONTO, Aug. 20, 2025 /CNW/ - HLS Therapeutics Inc. ("HLS" or the "Company") (TSX: HLS), a pharmaceutical company focusing on addressing unmet needs in the treatment of psychiatric disorders and cardiovascular disease, announces that the company has entered into a new Credit Agreement (the "Agreement") with National Bank of Canada ("National Bank") as administrative agent which provides for committed credit facilities denominated in Canadian dollars of up to CAD $107 million (USD ~$77.5 million).","length":547,"tagName":"p"},{"type":"text","content":"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.","length":484,"tagName":"p"},{"type":"text","content":"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).","length":292,"tagName":"p"},{"type":"text","content":"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 thr...