Knight Therapeutics Repays $60 Million Credit Facility Used for Paladin Acquisition

Knight Therapeutics Inc. (TSX: GUD) announced that it has repaid all outstanding amounts under its revolving credit facility with National Bank of Canada and a syndicate of lenders. The company had drawn $60 million from the facility in June 2025 to help finance its acquisition of Paladin.

The repayment was funded through strong cash flow generated by its operations in Canada and Latin America, according to the company. The revolving credit facility continues to provide borrowing capacity of up to US$100 million, with an additional US$100 million accordion feature available subject to certain conditions, supporting the company’s ongoing growth strategy across its pan-American pharmaceutical business.

This move signals financial strength and prudent capital management. By repaying the debt ahead of schedule using internal cash flows, Knight reduces its interest expenses and enhances its balance sheet flexibility. The retained access to substantial credit lines—up to US$200 million in total—positions the company to pursue further acquisitions or investments without immediate financing constraints.

The repayment also underscores the success of the Paladin integration. Paladin, a Canadian specialty pharmaceutical company, was acquired to expand Knight's portfolio in Canada. The ability to repay the acquisition debt quickly suggests that the combined entity is generating strong operating cash flows, validating the strategic rationale behind the deal.

For investors, the news is positive as it demonstrates management's commitment to deleveraging while maintaining growth capacity. The company's focus on Canada and Latin America, through subsidiaries like United Medical and Biotoscana Farma, continues to drive performance. The repayment may also alleviate concerns about debt levels, potentially supporting the stock price.

Knight Therapeutics, headquartered in Montreal, Canada, is a pharmaceutical company focused on acquiring or in-licensing and commercializing pharmaceutical products. Its Latin American subsidiaries operate under United Medical, Biotoscana Farma and Laboratorio LKM. The company's shares trade on the TSX under the symbol GUD. For more information, visit www.knighttx.com.