Karyopharm Therapeutics Enters Debt Forbearance Agreement
Karyopharm Therapeutics Inc. has entered into a Forbearance Agreement and Limited Waiver to Indentures with its lenders and noteholders. The agreement provides additional time for the company to advance its myelofibrosis program, negotiate with lenders, pursue strategic alternatives, or raise capital. The company has missed a principal installment and expects to miss an upcoming interest payment, and may also fail to meet a minimum liquidity covenant. The agreement allows for forbearance on exercising rights related to these defaults until October 15, 2026, contingent on certain conditions. The company will pay $20 million in fees, potentially in convertible preferred stock.
Key Highlights
- Karyopharm Therapeutics entered a Forbearance Agreement with lenders and noteholders.
- Company missed principal installment of $15.8M due Sept 10, 2026, and expects to miss interest payment due Sept 30, 2026.
- Company may not meet $25.0M minimum liquidity covenant after Oct 10, 2026.
- Consenting parties agreed to forbear exercising rights and remedies for Specified Defaults until Oct 15, 2026.
- Company agreed to pay fees and expenses, including $20M in cash or Series A convertible preferred stock.
- Overdue amounts become immediately due and payable upon termination of the Forbearance Period.
Price Impact
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