Company: ARWR
Filing Date: 2025-08-07
Form Type: 10-Q
Source: 0001628280-25-038858
Chunk: 94

Company: ARROWHEAD PHARMACEUTICALS, INC.
Filing Date: 2025-08-07
Form: 10-Q
Item: Part I, Item 8
Chunk 94
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 subsidiaries, subject to certain exceptions.The Financing Agreement contains customary covenants, including, without limitation, a financial covenant to maintain liquidity (cash, cash equivalents and investments) of at least $100.0 million if the Company’s market capitalization is above $1.5 billion, and negative covenants that, subject to certain exceptions, restrict indebtedness, liens, investments (including acquisitions), fundamental changes, asset sales and licensing transactions, dividends, modifications to material agreements, payment of subordinated indebtedness, distributions from certain parties, and other matters customarily restricted in such agreements. The Company is subject to restrictions on sales and licensing transactions with respect to certain core intellectual property, subject to certain exceptions, including certain transactions related to areas outside the United States, United Kingdom, European Union, Japan and China.The Financing Agreement contains certain embedded features that were identified and evaluated as not material to the consolidated financial statements.The outstanding balance of the Credit Facility consisted of the following:

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June 30, 2025September 30, 2024(in thousands)Initial Term Loan$400,000 $400,000 Accumulated interest on the Initial Term Loan53,454 9,000 Accumulated accretion of the MOIC Payment2,787 — Less: Unamortized debt issuance costs(14,284)(15,817)Less: Current portion of credit facility(40,000)— Less: Payments(201,625)— Credit facility, net of current portion$200,332 $393,183 The following table sets forth total interest expense recognized related to the Credit Facility:Three Months Ended June 30,Nine Months Ended June 30,2025202420252024(in thousands)Amortization of debt issuance costs$420 $— $1,533 $— Accretion of the MOIC Payment2,218 — 2,787 — Contractual interest expense13,766 — 44,454 —  Total interest expense$16,404 $— $48,774 $— The amounts shown in the table below, related to the Credit Facility, represent the expected repayments of principle and accrued interest balance as of June 30, 2025 as well as any mandatory prepayments that the Company is obligated to make to the Lenders during the indicated periods. The principal balance will increase from accrued paid in kind interest and the table does not include MOIC payments beyond