Collegium Pharmaceutical closed a $980 million syndicated credit facility on December 30, 2025. The facility is structured as a $580 million term loan, a $300 million delayed‑draw term loan, and a $100 million revolving line of credit, all maturing in 2030.
The new arrangement replaces the company’s prior $646 million term loan, with roughly $581 million of that principal repaid. Interest on the term loan is set at the Secured Overnight Financing Rate (SOFR) plus a spread of 2.75 % to 3.75 %, with the initial rate at SOFR plus 2.75 %. The lower cost of capital is expected to generate annualized interest savings and provide additional liquidity for future growth initiatives.
Collegium’s strategic rationale for the facility is two‑fold. First, the additional capital gives the company flexibility to pursue acquisitions and expand its neuropsychiatry portfolio, particularly the ADHD drug Jornay PM. Second, the refinancing supports the company’s disciplined capital allocation, which has already reduced net leverage from 1.5× to below 1.0× and enabled a $25 million share‑repurchase program. The facility therefore strengthens the balance sheet and underpins the company’s dual‑engine growth strategy.
The credit move comes on the heels of a strong Q3 2025 earnings report. Revenue rose to $209.4 million, up 31 % year‑over‑year, driven by a 20 % increase in Jornay PM sales and an 11 % rise in the pain‑management portfolio. Adjusted EBITDA climbed 27 % to $133 million, and earnings per share of $2.25 beat analyst expectations by $0.37, a 20 % lift. The beat was largely due to disciplined cost control, a favorable product mix, and the continued momentum of the company’s core drug lines.
CFO Colleen Tupper said the new facility “provides us with flexibility to further drive long-term value as we continue to evaluate opportunities to expand and diversify our product portfolio through business development.” The comment underscores the company’s intent to use the credit line for strategic investments while maintaining a conservative balance‑sheet profile.
The facility’s maturity in 2030 and the inclusion of a delayed‑draw term loan and revolving line give Collegium a flexible, long‑term source of capital that can be drawn on as opportunities arise, while the lower interest rate reduces financing costs and supports the company’s goal of sustaining high operating margins and shareholder returns.
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