L.O.T.W. #131 - Myriad Genetics exits the bank syndicated loan market in pursuit of a larger private credit solution
$200 million term loan (interest-only with lite amortization) refinances $115 million ABL facility
In July 2025, OrbiMed Royalty & Credit Opportunities IV provided a $200 million term loan facility to refinance Myriad Genetics’ existing debt and fund working capital. The initial $125 million draw fully repaid the company’s ~$60 million asset-based loan and bolstered its cash position.
👓At a Glance
Borrower: Myriad Genetics, Inc.
Lender: OrbiMed Royalty & Credit Opportunities IV
Deal Size: $200.0 million term loan commitment
Structure: Senior secured
Rate: Variable - greater of 1 month SOFR or 2.50%, plus 6.50%
Term: 60 months
Use of Proceeds: Refinance existing bank-syndicated ABL credit; working capital and general corporate purposes
Source: SEC 8-K
📷Borrower Snapshot
Sector: Healthcare
Subsector: Biotechnology
Ownership: Public
Commercial Stage: Revenue generating; LTM EBITDA negative
Business Overview: Myriad Genetics, Inc. (Nasdaq: MYGN) is a leading genetic testing and precision medicine company focused on providing diagnostic insights that help patients and healthcare providers make informed decisions. The company offers a broad portfolio of molecular diagnostic tests across oncology, women’s health, and mental health, including hereditary cancer testing, prenatal screening, and pharmacogenomics.
⚙️Structure & Terms
Source: Credit Agreement Exhibit to 8-K
Commitment: $200.0 million
$125.0 initial draw fully funded at close
$75.0 available through June 30, 2027
Term Loan Amortization:
Interest only through ~ 50 months, then quarterly principal payments equal to 2.50% of outstanding balance
Maturity: July 31, 2030
Rate: Variable - greater of 1 month SOFR or 2.50%, plus 6.50%
Fees:
Admin, facility, exit, and prepayment fees disclosed in a separate fee letter
Undrawn fee of 0.50% of undrawn delayed draw commitment due on the last day of each interest period
Financial Covenant:
Minimum Revenue
LTM revenue of $615.0 million beginning the month ending December 31, 2025
Threshold steps up each measurement period by ~$20.0 million through December 31, 2029