Arrowhead Pharmaceuticals refinances debt with $400 million Sixth Street loan at lower interest
Arrowhead Pharmaceuticals replaced its existing senior secured term loan with a new $400 million facility from Sixth Street Lending Partners and other lenders. The new loan, effective November 2 2026, matures on November 2 2031 and carries interest at SOFR + 5.50%, down from the prior 15% rate. The refinancing also eliminated pre‑payment sweep requirements and reduced the required payoff amount by $68 million, improving the company’s liquidity and financial flexibility.
Why it matters
The lower interest rate and removal of sweep obligations reduce financing costs and free cash flow for Arrowhead, which can be used to fund its REDEMPLO® program and other pipeline activities. Extending the maturity to 2031 gives the company a longer runway before principal repayment is due.
Key facts
- 1Arrowhead entered into a senior secured term loan facility with Sixth Street Lending Partners and other lenders for $400 million, fully funded on November 2 2026. tradingview.com
- 2The new loan matures on November 2 2031. tradingview.com
- 3The facility carries interest at the Secured Overnight Financing Rate (SOFR) plus 5.50%, replacing the prior 15% annual rate. abladvisor.com
- 4Arrowhead used the new loan and cash on hand to repay prior loans totaling approximately $404.4 million. tradingview.com
- 5The refinancing reduced the required pre‑payment amount by $68 million compared with the contractual minimum repayment on the retired facility. abladvisor.com
- 6The new loan eliminates mandatory pre‑payment sweeps of upfront payments, milestones, royalties and commercial revenue. abladvisor.com
Summary written by AlphAI AI Desk from 2 of 2 sources. Not investment advice. Figures are as stated by the linked sources.