Calliditas Therapeutics AB ADR (CALT)

Calliditas Therapeutics AB ADR (CALT) stock dropped by 11.33% due to the announcement of a term loan agreement with Athyrium Capital Management, LP, as investors evaluated the terms and impact of the refinancing on the company's financial position and growth prospects. Here are the key reasons behind the stock's decline:

• Loan Agreement: Calliditas Therapeutics signed a term loan agreement worth 92 million Euro with funds managed by Athyrium Capital Management. The proceeds from the loan will primarily be used to fully repay the company's existing 68 million Euro loan with Kreos Capital.
• Interest-Only Period Extension: The refinancing allows Calliditas to extend the interest-only period on its debt by three years at the same interest rate as the previous term loan. This extension provides the company with financial flexibility.
• Loan Details: The principal amount of the new loan is 24 million Euros greater than the prior facility. The loan will have quarterly interest-only payments through the third quarter of 2026 and partial amortization in four quarterly principal payments starting in December 2026. The loan carries a fixed interest rate of 9.00%.
• Financial Impact: The gross proceeds of the loan are subject to an original issue discount, and the expected cash proceeds to the company from the drawdown, net of repayment of the existing loan and fees, are approximately 19 million Euros.
• Investor Sentiment: The market's reaction to the loan agreement may have contributed to the stock's decline, with investors assessing the terms and implications of the refinancing.