aibioCollegium closes $980 million syndicated credit facility with Truist Bank as agent
Tickers COLL
The five-year facility has a $580 million initial term loan, a $300 million delayed draw term loan and a $100 million revolver, with Truist Bank as administrative agent. Collegium used the initial loan to repay its previous term loan in full, including its prepayment premium, which the filing does not size.
Key facts
- Company
- Collegium Pharmaceutical, Inc. (NASDAQ: COLL)
- News type
- Debt Financing
- Primary source
- COLLEGIUM PHARMACEUTICAL, INC Form 8-K filed December 30, 2025 (SEC EDGAR)
Collegium Pharmaceutical, Inc. (Nasdaq: COLL) said in a Form 8-K filed December 30, 2025 that it entered into a credit agreement on December 23, 2025 for a $980 million syndicated credit facility. A syndicated facility is provided by a group of banks rather than a single lender. The company used the first term loan to repay its earlier loan in full.
The credit facility
The credit agreement is among Collegium, the lenders party to it and Truist Bank, which acts as administrative agent. It provides a $580,000,000 term loan, $300,000,000 of delayed draw term loan commitments and a $100,000,000 revolving credit facility. The company's press release calls it an inaugural syndicated credit facility that matures in 2030.
The delayed draw term loan and the revolver were undrawn at closing. The company expects to use them for general corporate purposes, including to partially fund future business development opportunities.
Banks named in the release
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 served as joint bookrunners and joint lead arrangers for the syndicate. Flagstar Bank, N.A., PNC Bank, National Association and Synovus Bank served as co-documentation agents. Neither the 8-K nor the release names a law firm for the company or the banks.
Pricing and covenants
Loans bear interest at term SOFR plus a spread based on the company's First Lien Net Leverage Ratio, ranging from 2.75% to 3.75%. The rate at closing was SOFR plus 2.75%. The release says the lower rate is expected to produce meaningful annualized interest savings.
The filing says the agreement has quarterly tested financial covenants. One is a first lien secured net leverage ratio maintenance covenant, which lets the company net up to $250,000,000 of unrestricted cash and cash equivalents. The other is a customary fixed charge coverage ratio maintenance covenant.
Repayment schedule
Collegium must repay the loans in scheduled quarterly instalments starting March 31, 2026, and on certain prepayment triggers. It may repay at its option without premium or penalty. The company says the credit agreement will be filed as an exhibit to its annual report for the year ending December 31, 2025.
The old loan
The initial term loan repaid the remaining obligations under the Second Amended and Restated Loan Agreement dated July 28, 2024, in which Biopharma Credit PLC acted as collateral agent. The 8-K says the repayment included the applicable prepayment premium and make-whole amount, and that the liens securing the old loan were released under a customary payoff letter. It does not give the size of the premium or the make-whole amount.
The release says the initial term loan repaid approximately $581 million of principal, which was the entire remaining balance of a previous $646 million term loan from funds managed by Pharmakon Advisors, LP.
The company says the new facility is expected to reduce its borrowing cost. Chief Financial Officer Colleen Tupper said in the release that the facility "significantly improves our debt terms and underscores the strength of our financial outlook." Neither the 8-K nor the release gives revenue, profit or cash figures to test that statement against.
Company background
The release describes Collegium as having a portfolio of pain management medications and a neuropsychiatry business led by Jornay PM, a treatment for ADHD. It gives its headquarters as Stoughton, Massachusetts. The company's 10-K for 2024 lists its marketed products as Jornay PM, Belbuca, Xtampza ER, Nucynta ER, Nucynta IR and Symproic, and says it acquired Ironshore, the developer of Jornay PM, on September 3, 2024. Belbuca, Xtampza ER and the Nucynta products are opioid analgesics. Tupper signed the 8-K as Executive Vice President and Chief Financial Officer.
What comes next
The first scheduled repayment is due March 31, 2026. The delayed draw term loan and revolver can be drawn for business development, and the facility matures in 2030. Neither document says which acquisitions or products the company is considering.