Collegium closes $980 million syndicated credit facility, repays Pharmakon term loan

A refinancing, not new cash at closing

Collegium Pharmaceutical, Inc. (Nasdaq: COLL) said on December 30, 2025 that it had closed its first syndicated credit facility. The aggregate $980 million facility matures in 2030 and has three parts: a $580 million initial term loan, a $300 million delayed draw term loan and a $100 million revolving credit facility.

The initial term loan was used to repay approximately $581 million of principal. That was the entire remaining balance of the company's previous $646 million term loan from funds managed by Pharmakon Advisors, LP. The delayed draw term loan and the revolver were both undrawn at closing. The company expects to use them for general corporate purposes, including to partly fund future business development.

Pricing and the banks

Loans bear interest at term SOFR plus a spread of 2.75% to 3.75%, based on a first lien net leverage ratio. The rate at closing was SOFR plus 2.75%. Chief Financial Officer Colleen Tupper said the facility "significantly improves our debt terms," and the company expects meaningful annualized interest savings.

Truist Bank acted as administrative agent. Truist Securities, Inc., Citizens Bank, N.A., MUFG Bank, Ltd., Fifth Third Bank, National Association, The Huntington National Bank and U.S. Bank National Association were joint bookrunners and joint lead arrangers. Flagstar Bank, N.A., PNC Bank, National Association and Synovus Bank were co-documentation agents. The release names no legal counsel for the company or the banks.

The business that carries the debt

The 10-K describes Collegium as a company with products for attention deficit hyperactivity disorder and moderate to severe pain. Its US products are Jornay PM, Belbuca, Xtampza ER, the Nucynta products and Symproic. Jornay came with the September 3, 2024 acquisition of Ironshore. The FDA approved Jornay in August 2018 for ADHD in patients six years and older. The 10-K calls it the only FDA-approved stimulant dosed in the evening.

Belbuca is a buccal film with buprenorphine, a Schedule III opioid, approved in October 2015 for severe and persistent pain. Nucynta ER and Nucynta IR are tapentadol, a Schedule II opioid. The 10-K says New Patient Population exclusivity extended Nucynta IR's US exclusivity to July 3, 2026, and pediatric exclusivity runs to January 3, 2027 for Nucynta IR and December 27, 2025 for Nucynta ER.

Xtampza ER is an abuse-deterrent oxycodone product, but the 10-K concedes that methods to defeat its tamper-resistant properties have been reported. It also says its real-world abuse data depend partly on self-reported poison center cases and are a single snapshot that is subject to change.

Critical reading of the terms

The new facility replaces a $646 million loan with a $580 million term loan, and the initial term loan was used to repay about $581 million. The facility's remaining capacity sits in the $300 million delayed draw term loan and the $100 million revolver, both undrawn at closing. The company says those are for general corporate purposes and possible business development, so most of the new capacity was unused at closing.

The release calls the pricing a benefit, but the spread can reach 3.75% depending on the first lien net leverage ratio. The 2.75% spread is the rate at closing, not a fixed rate for the life of the loans. The release does not give the rate on the old Pharmakon loan, the company's cash, its earnings or the leverage ratio that sets the spread, so it does not show how large the promised interest savings are.

The company also says it is looking to "expand and diversify our product portfolio through business development," as a stated use for remaining capacity. That is the company's plan, not an agreed deal.

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