Mintz advised global investment firm Sixth Street in a strategic financing agreement with Arrowhead Pharmaceuticals, Inc. to fund innovation and growth opportunities across Arrowhead’s pipeline of RNAi therapeutics. 

The $500 million senior secured credit facility includes $400 million funded at close with an additional $100 million available at Arrowhead’s option, subject to mutual agreement between Sixth Street and Arrowhead, during the seven-year term of the agreement.

TD Cowen acted as investment advisor to Arrowhead. Mintz acted as co-counsel with Proskauer Rose LLP. The Mintz team was led by Richard Gervase, Member and Chair of the firm’s Royalty & Revenue Interest Financing Transactions Group, with support from Members Eric Blythe (Bankruptcy &  Restructuring), and Joanne Hawana (Regulatory) and Associates Christine Pemberton (IP), Katie Jensen (IP), Laura Huber (Corporate), Bertie Magit (Corporate), and Dormie Ko (Bankruptcy & Restructuring).

The credit facility matures on August 7, 2031, and bears interest at an annual rate of 15%. The credit facility does not provide for scheduled amortization payments during the term, and all principal will be due on the Maturity Date. Arrowhead will have the right to prepay loans under the credit facility at any time. The company is required to partially repay loans under the credit facility with a portion of the proceeds from certain transactions, such as the future collection of upfront payments, milestones, and royalties from partnerships and collaborations, and commercial revenue by Arrowhead. All obligations will be secured on a first-priority basis, subject to certain exceptions, by security interests in substantially all assets of the company.

Sixth Street is a global investment firm with over $75 billion in assets under management and committed capital. Sixth Street uses its long-term flexible capital, data-enabled capabilities, and One Team culture to develop themes and offer solutions to companies across all stages of growth. Sixth Street Healthcare and Life Sciences finances the development and commercialization of innovative therapeutics and invests in healthcare technology companies across all stages of growth. Investments in the sector include Arsenal Biosciences, Biohaven, Blueprint Medicines, Caris Life Sciences, Chroma Medicine, ConcertAI, Datavant, Immunogen, Ironwood, and Mammoth Biosciences, among many others. Founded in 2009, Sixth Street has more than 600 team members including over 250 investment professionals operating around the world. For more information, visit www.sixthstreet.com.

Mintz is a leading 600+ attorney law firm with deep experience in the life sciences industry. We work with leading industry investors and underwriters in innovative financings and offerings, help entrepreneurs launch and protect great ideas, facilitate funding opportunities, and counsel emerging as well as established and public companies in all aspects of their businesses, including regulatory approvals and compliance. To learn more about our team, please visit www.mintz.com. 

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