Bill Gross warns on gold momentum as regional bank stocks tumble
United Therapeutics Corporation (NASDAQ:UTHR), a biotechnology company with a market capitalization of $13.1 billion and an excellent financial health score according to InvestingPro, announced on Monday that it has entered into a new $2.5 billion unsecured revolving credit agreement, with an option to increase the facility by up to $750 million. The agreement, facilitated by Wells Fargo (NYSE:WFC) Bank as the administrative agent, was executed on April 25, 2025, and will mature five years from the closing date with the possibility of two one-year extensions.
This strategic financial move provides the Silver Spring, Maryland-based biotechnology company with substantial liquidity for refinancing existing debts, working capital, and other corporate purposes. The company’s strong financial position is evident from its impressive current ratio of 5.25 and minimal debt-to-equity ratio of 0.05. On the day of the agreement, United Therapeutics drew $200 million from this facility to repay its obligations under a previous credit arrangement dated March 31, 2022, which was simultaneously terminated without penalties.
The credit agreement includes various financial covenants, such as maintaining a maximum consolidated total indebtedness to EBITDA ratio and a minimum consolidated interest coverage ratio. These measures are aimed at ensuring the company’s financial stability. With last twelve months EBITDA of $1.52 billion and a perfect Piotroski Score of 9, the company demonstrates robust financial health. InvestingPro analysis indicates the stock is currently trading below its Fair Value, suggesting potential upside opportunity.
United Therapeutics, known for its work in developing treatments for pulmonary arterial hypertension and other diseases, has not required any of its subsidiaries to guarantee the obligations under the new credit facility. However, the agreement allows for the possibility of subsidiary guarantees in the future.
The announcement of this financial restructuring comes without any associated early termination penalties and is part of United Therapeutics’ broader financial strategy. The company’s decision to refinance its debt through the new credit facility reflects its ongoing efforts to maintain a strong balance sheet and support its growth initiatives.
This report is based on United Therapeutics’ recent SEC filing and provides an overview of the company’s latest financial arrangements. For a comprehensive analysis of UTHR’s financial health, valuation metrics, and additional ProTips, visit InvestingPro, where you’ll find detailed research reports and expert insights on over 1,400 US stocks.
In other recent news, United Therapeutics Corporation reported its fourth-quarter 2024 earnings, revealing a shortfall in both earnings per share (EPS) and revenue compared to forecasts. The company posted an EPS of $6.19, below the anticipated $6.68, with revenue reaching $735.9 million, slightly under the expected $739.92 million. Despite this, United Therapeutics achieved record annual revenue growth for the third consecutive year, with significant contributions from key products like Tyvaso and Orenitram. In analyst updates, Wells Fargo downgraded the company’s stock from Overweight to Equal Weight, citing uncertainties in the efficacy of the TETON program. Meanwhile, BofA Securities upgraded the stock to Neutral, with expectations of first-quarter revenues aligning closely with consensus estimates. Goldman Sachs adjusted its price target for United Therapeutics to $293 from $302, maintaining a Neutral rating, due to a modest reduction in Tyvaso forecasts and increased research and development spending. The company is also navigating new mandatory manufacturer discounts under the Inflation Reduction Act, which are expected to have a limited impact on financials due to a phase-in period for smaller manufacturers.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.