Aytu BioPharma extends Eclipse term loan and revolver to 2029, adds $1.5 million advance

Aytu BioPharma, Inc. (Nasdaq: AYTU) extended the maturity of its term loan and revolving credit facility to June 12, 2029 under an amended loan agreement with Eclipse Business Capital LLC. The amendment also raised the term loan to an outstanding principal amount of $13.0 million and added a $1.5 million incremental advance on the revolver. Aytu disclosed the changes in a Form 8-K filed June 23, 2025.

What the filing says

On June 20, 2025, Aytu signed Amendment No. 6 to its Loan and Security Agreement, which the filing calls the Eclipse Amendment. The borrowers are Aytu, Neos Therapeutics, Inc., Neos Therapeutics Brands, LLC, Neos Therapeutics, LP, Aytu Therapeutics, LLC, PharmaFab Texas, LLC and Cherry Creek Therapeutics, Inc. Eclipse Business Capital LLC, formerly Encina Business Credit, LLC, acts as agent for the lenders. The filing refers to the agent and the lenders together as the Eclipse Lender.

The amendment is filed as Exhibit 10.1 to the 8-K, with portions omitted because the company determined the omitted information is not material and would likely cause competitive harm if made public.

The loan terms

Under the amendment, the Eclipse Lender made three changes.

First, it extended the maturity of the term loan to June 12, 2029, and increased the term loan so that $13.0 million of principal was outstanding on the closing date of the amendment.

Second, it extended the maturity of the revolving credit facility to June 12, 2029. It also increased the potential maximum borrowing base through a $1.5 million incremental advance. A borrowing base is the pool of assets that limits how much a company can draw on a revolving line. The incremental advance carries an interest rate of SOFR plus 5.50%. Repayment and permanent reduction of the advance begin on August 1, 2025 and continue on the first day of each calendar month after that, at $125,000 per month, until the advance has been reduced to $0.

Third, it revised the borrowing base that supports the revolver by permitting concentration limits of 25% on certain independent pharmacy distributors.

The filing also treats the amendment as the creation of a direct financial obligation under Item 2.03, and says Aytu issued a press release on June 23, 2025 announcing the transactions.

Who is involved

Chief Financial Officer Ryan J. Selhorn signed the Form 8-K on behalf of Aytu. Eclipse Business Capital LLC is the agent for the lenders.

About the company

Aytu's annual report on Form 10-K, filed September 26, 2024, describes it as a pharmaceutical company focused on commercializing novel therapeutics. The common stock trades on the Nasdaq Capital Market under the ticker symbol "AYTU." Its Rx segment sells prescription products primarily through third party wholesalers. One portfolio treats attention deficit hyperactivity disorder and includes Adzenys XR-ODT and Cotempla XR-ODT. The other includes Karbinal ER and the Poly-Vi-Flor and Tri-Vi-Flor fluoride supplement lines.

In that 10-K the company said it had completed the wind down of its Consumer Health Segment during the first quarter of fiscal 2025 and had agreed to divest the business. The divestiture provides for Aytu to receive up to $0.5 million of revenue-based royalty payments. The company also reported a net loss of $15.8 million for the year ended June 30, 2024 and an accumulated deficit of $320.0 million as of that date. It said it had incurred significant losses in each year since inception.

Chairman and Chief Executive Officer Joshua R. Disbrow signed the 10-K, along with Lead Independent Director John A. Donofrio, Jr. and directors Carl C. Dockery, Abhinav Jain and Vivian H. Liu.

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