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Cipher pays down Athyrium debt with new $20 mln facility

Canadian specialty pharmaceutical company Cipher Pharmaceuticals Inc (TSX: CPH) has entered into a US$20 million senior secured term credit facility with Canadian Imperial Bank of Commerce. The proceeds will be used to repay the remaining balance on senior secured notes provided by Athyrium Capital Management, a U.S. healthcare investment firm. Athyrium in 2015 supplied Cipher with US$100 million in notes, used in part for the company’s acquisition of Innocutis Holdings. Based in Mississauga, Ontario, Cipher is focused on the dermatology products market.


Cipher Pharmaceuticals Announces New Credit Facility

Substantially reduces cost of capital and interest expense, provides additional capacity to support future growth

MISSISSAUGA, ON, Nov. 3, 2017 /CNW/ – Cipher Pharmaceuticals Inc. (TSX:CPH) (“Cipher” or “the Company”) today announced it has entered a new three-year, US$20.0 million senior secured term credit facility with Canadian Imperial Bank of Commerce (“CIBC”). The proceeds will be used to fully repay the remaining balance on the senior secured notes with investment funds managed by Athyrium Capital Management.

“This new facility is an important financial milestone for Cipher, allowing us to significantly reduce our interest expense and cost of capital to levels that better reflect our strong financial position,” said Robert Tessarolo, President and CEO of Cipher. “In addition to these immediate benefits, the new facility provides added debt capacity on improved terms that bolsters our competitiveness and supports our growth strategy.”

The credit facility has a maturity date of November 2, 2020 and bears interest on the outstanding principal at LIBOR plus 1.5% to 2.5% depending on the Company’s total debt-to-EBITDA ratio. At the Company’s current ratio, the interest rate will be approximately 2.9%. The Company will make quarterly principal payments over the term of the loan. The facility also carries an accordion feature that allows for an additional US$10.0 million of capacity, subject to customary terms and conditions.

About Cipher Pharmaceuticals Inc.
Cipher (TSX:CPH) is a specialty pharmaceutical company with a robust and diversified portfolio of commercial and early to late-stage products. Cipher acquires products that fulfill unmet medical needs, manages the required clinical development and regulatory approval process, and markets those products either directly in Canada or indirectly through partners in Canada, the U.S., and South America. For more information, visit

For further information: Craig Armitage, LodeRock Advisors, (416) 347-8954,

Photo courtesy of Cipher Pharmaceuticals Inc