Heron Therapeutics completes capital restructuring to reduce debt

Published 08/08/2025, 12:50
Heron Therapeutics completes capital restructuring to reduce debt

CARY, N.C. - Heron Therapeutics, Inc. (NASDAQ:HRTX), a biotechnology company with a market capitalization of $281 million and showing promising revenue growth of 12.4% over the last twelve months, has completed a comprehensive capital restructuring designed to enhance financial flexibility and support long-term growth, according to a press release statement issued Friday. InvestingPro analysis indicates the company maintains strong liquidity with a current ratio of 2.4, suggesting solid short-term financial stability.

The biotechnology company’s multi-faceted refinancing transaction includes a new $110 million senior credit facility with Hercules Capital, Inc. (NYSE:HTGC) due in 2030, with an additional $40 million available upon achievement of certain milestones. According to InvestingPro data, while the company isn’t currently profitable, analysts expect profitability this year - one of several key insights available in the comprehensive Pro Research Report covering over 1,400 US stocks.

The restructuring also features an exchange agreement with existing holders of Heron’s 1.5% senior convertible notes due 2026, retiring outstanding principal through approximately $125 million in cash repayment and $25 million converted into common stock.

Additionally, the company issued $35 million of new 5.0% senior convertible notes due 2031 and conducted a private placement that raised $27.7 million in gross proceeds through common and preferred equity issuance.

"We’ve worked diligently to streamline our capital structure and position Heron for growth," said Craig Collard, Chief Executive Officer of Heron, in the press release.

The refinancing transactions were entered into on August 8, 2025, and are expected to close on August 12, 2025.

Heron Therapeutics is a commercial-stage biotechnology company focused on therapeutic innovations for acute care and oncology patients. Its product portfolio includes ZYNRELEF for postoperative pain, APONVIE for prevention of postoperative nausea and vomiting, and CINVANTI and SUSTOL for chemotherapy-induced nausea and vomiting.

Leerink Partners served as exclusive financial advisor and placement agent, while DLA Piper LLP (US) served as legal advisor to Heron for the transaction.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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