Arrowhead refinances $400 million Sixth Street facility at lower rate

Arrowhead Pharmaceuticals, Inc. (NASDAQ: ARWR) announced on November 4, 2026 that it had completed a refinancing with funds managed by Sixth Street. The transaction retires Arrowhead's existing $400 million Sixth Street facility at a $68 million discount to the contractual minimum repayment amount and establishes a new $400 million Sixth Street senior secured term loan facility bearing interest at SOFR plus 5.50%.¹

The closing took place on November 2, 2026, when Arrowhead Pharmaceuticals, Inc. and its subsidiary, Arrowhead Madison Inc., as guarantor, refinanced its senior secured term loans under the Existing Financing Agreement by entering into an Amended and Restated Financing Agreement with lenders and Sixth Street Lending Partners, as administrative agent and collateral agent.¹ The new Credit Facility matures on November 2, 2031 and bears interest, at the company's election, at three-month Term SOFR plus 5.50% or a base rate plus 4.50%.¹ By comparison, the term loans under the Existing Financing Agreement bore interest at a fixed annual rate of 15.0%, paid in kind, and were scheduled to mature on August 7, 2031.¹

On the closing date, the company used cash on hand to repay in full the term loans outstanding under the Existing Financing Agreement, which had an outstanding principal balance of approximately $363.8 million, for an aggregate payoff amount of approximately $404.4 million.¹ That payoff represented a discount of approximately $68 million from the 2.0x MOIC payment that would have been owed to the lenders upon repayment in full on or prior to August 7, 2028.¹

The new agreement also loosens other terms. Unlike the Existing Financing Agreement, the A&R Financing Agreement does not require the company to prepay the Credit Facility with any portion of net sales of plozasiran or other products, royalties, milestones, or other proceeds of licensing or partnering transactions, or proceeds of pipeline asset monetizations.¹ The minimum cash covenant was also eased, as the company and Arrowhead Madison Inc. must maintain unrestricted cash and cash equivalents of at least $125.0 million at all times, reduced from the $150.0 million minimum required previously.¹