Loan & DebtJul 7, 2026, 05:02 PM
Oncology Institute Secures $75M Loan, Repays $86M Convertible Notes
AI Summary
The Oncology Institute secured a new $75 million term loan facility from OrbiMed, maturing in 2031, to refinance its existing debt. The proceeds, along with $11 million cash on hand, were used to repay the outstanding $86 million 4% senior secured convertible notes due 2027 held by Deerfield Partners. As part of the repayment, the company issued warrants to Deerfield for 10,025,535 shares at an exercise price of $8.567. This strategic refinancing aims to strengthen the balance sheet, improve liquidity, and extend debt maturities without diluting existing shareholders.
Key Highlights
- Secured new $75 million term loan facility from OrbiMed.
- Used proceeds to repay $86 million 4% senior secured convertible notes due 2027.
- New term loan matures on July 1, 2031.
- Issued warrants for 10,025,535 shares to Deerfield Partners.
- Warrants have an exercise price of $8.567 per share.
- New loan interest rate: SOFR + 5.75% or 3.00% + 5.75%.
- Requires minimum net revenue of $700 million from December 2027.
Price Impact
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