v3.25.1
Debt
 3 Months Ended
Mar. 31, 2025
Debt Disclosure [Abstract]  
Debt

(8) Debt

 

Long-term debt consists of the following (in thousands):

 

   March 31, 2025   December 31, 2024 
Amounts due under term loan  $22,000   $22,000 
Accrued end-of-term payments   563    465 
Less: unamortized debt issuance costs   (396)   (427)
Long-term debt, less issuance costs  $22,167   $22,038 

 

The effective rate of the term loan, inclusive of amortization of debt issuance costs and accretion of the final payment, was 13.20% as of March 31, 2025. The effective rate of the revolving line of credit was 8.94% as of March 31, 2025. As of March 31, 2025, the Company had $5.7 million available under its revolving line of credit and was in compliance with all covenants under the term loan and revolving line of credit agreements.

 

The credit agreements contain affirmative and negative covenants customarily applicable to senior secured credit facilities, including covenants that, among other things, limit or restrict the ability of certain subsidiaries of the Company, as borrowers (the “Borrowers”), subject to negotiated exceptions, to incur additional indebtedness and additional liens on their assets, engage in mergers or acquisitions or dispose of assets, pay dividends or make other distributions, voluntarily prepay other indebtedness, enter into transactions with affiliated persons, make investments, undergo a change in control, and change the nature of their businesses. On April 9, 2025, the credit agreements were amended to increase the common stock ownership threshold that triggers a change in control from 40% to 49.9% to accommodate the sale of common stock from OrbiMed. See Note 17. In addition, the credit agreements require the Borrowers and the Company to maintain net product revenue at or above minimum levels and to maintain a certain minimum liquidity level, in each case as specified in the credit agreements. As of March 31, 2025, the Company was in compliance with all covenants under the credit agreements.

 

Each of the Borrowers, and the Company, as guarantor, are jointly and severally liable for all of the obligations under the term loan and revolving line of credit agreements. The Borrowers’ obligations, and the Company’s obligations as a guarantor, under the credit agreements are secured by first-priority liens on substantially all of their assets, including, without limitation, all inventory, equipment, accounts, intellectual property and other assets of the Company and the Borrowers.