aibioKaryopharm gets forbearance after missed loan and note payments
Tickers KPTI
Lenders and noteholders agreed to forbear from enforcing remedies for a limited period. The forbearance period is set to end October 15, 2026 unless extended, and can end sooner on several triggers.
Key facts
- Company
- Karyopharm Therapeutics Inc. (NASDAQ: KPTI)
- News type
- Debt Financing
- Primary source
- SEC Form 8-K
Karyopharm Therapeutics Inc. and its subsidiary guarantors signed a Forbearance Agreement and Limited Waiver to Indentures on September 10, 2026, according to a Form 8-K. The company did not pay a principal installment of approximately $15.8 million due under its Credit and Guaranty Agreement dated May 8, 2024, on September 10, 2026. It made no cash interest payments on its convertible notes on June 30, 2026, and does not expect to pay the cash interest due September 30, 2026. It may not meet a $25.0 million minimum liquidity covenant that applies after October 10, 2026.
The consenting parties are the lenders under the credit agreement, holders of 100% of the 9.00% Convertible Senior Notes due 2028 and 2029, and the investor representative under a 2019 revenue interest financing agreement. Wilmington Savings Fund Society, FSB, acts as agent and trustee for specified provisions. The parties agreed to forbear from enforcing remedies on the specified defaults. The agreement does not waive the defaults or extend any payment deadline, and the parties reserved their rights. The 8-K names no individual lenders or advisors.
Terms of the forbearance
The forbearance period ends at the earliest of 11:59 p.m. Eastern time on October 15, 2026, as it may be extended, a bankruptcy-related default, a material enforcement action by a creditor, or a termination notice after specified events. Those include liquidity below $10.0 million, a material adverse effect, and the U.S. Food and Drug Administration refusing to accept the supplemental New Drug Application for selinexor with ruxolitinib for myelofibrosis, or the company withdrawing it.
Credit agreement obligations bear 2.00% a year above the applicable rate from September 10, and defaulted note amounts carry an additional 2.00% a year, payable in cash. The company agreed to pay fees of $20.0 million, plus interest, under a fee letter with certain consenting parties. The fees are fully earned and not reduced if the forbearance ends early.
Preferred stock and the share cap
The company elected to pay those fees in preferred stock. It will issue 20,000 shares of 0% convertible perpetual preferred stock at $1,000 per share, with a liquidation preference of $1,000 per share. Issuance is expected on September 17, 2026. Holders can convert at $1.62 per share of common stock, with no ratchet on future equity raises.
Until stockholders approve issuing the full amount of common stock upon conversion, conversions are capped at 19.99% of the voting power outstanding at issuance. Shares above that cap are settled in cash, based on the 20-trading-day volume-weighted average price before conversion. The company must seek that stockholder approval no later than March 15, 2027.
Business and finances
The company says the forbearance gives it time to advance its myelofibrosis program, negotiate with lenders, pursue alternatives or raise equity. Its marketed product is XPOVIO (selinexor), which its annual report says faces substantial competition in multiple myeloma. The 8-K gives no efficacy data for the myelofibrosis filing, which it lists as a trigger that could end the forbearance if the FDA refuses to accept it.
The 8-K puts approximately $129.0 million of the term loan outstanding on September 10, 2026, excluding interest after June 30, plus $15.6 million of 2028 Notes and $108.0 million of 2029 Notes. About $2.8 million of interest on the notes due June 30 remains unpaid. Future royalty obligations under the 2019 revenue interest agreement totaled $113.5 million.
The company expects existing liquidity to fund its plans only until October 15, 2026, assuming the forbearance stays in effect. Absent more funding or strategic transactions, it says it will be unable to continue as a going concern and may have to consider seeking protection under the bankruptcy laws, liquidating assets or ceasing operations. The annual report filed February 13, 2026 had said liquidity would last only into the second quarter of 2026.
Revenue was $146.1 million in 2025 and $145.2 million in 2024. Cash used in operations fell to $75.4 million from $127.5 million, and research and development expense fell to $125.6 million from $143.2 million. The net loss widened to $196.0 million from $76.4 million. At June 30, 2026, cash and cash equivalents were $55.0 million and short-term investments were $10.1 million.