JWCA advises Collegium on its $645.8 million term loan facility

July 2024 | read press release

Transaction Background

Collegium Pharmaceuticals, Inc. (“COLL” or “the Company”) wanted to refinance its existing Pharmakon debt to reduce interest expense and raise additional capital for M&A. Collegium engaged J. Wood Capital Advisors (“JWCA”) to advise on the financing.

The Company’s objectives included:

• Promptly refinance existing ~$321mm of Pharmakon debt and raise additional capital for M&A on a delayed draw basis

• Lower the cost of capital

• Minimize financial covenants while maximizing financial and operational flexibility for management; increase flexibility under existing credit agreement

JWCA worked closely with Collegium to evaluate financing alternatives that could meet the Company’s objectives. JWCA:

• Created a competitive process for potential lenders to provide offers; evaluated bank, institutional and direct lending market and proposals to help Collegium select the one that best met its objectives

• Advised the Company on pricing and terms through the negotiation process

Results

Collegium successfully executed the financing at best-available terms, pricing, and terms, under an accelerated time-line to support its M&A process

Reduced coupon by 300bps and improved other terms under existing CA

Resulted in a financing outcome that achieved company’s objectives including timely additional committed capital for M&A