Myriad Genetics Announces New $200 Million Credit Facility

Rhea-AI Summary

Myriad Genetics (NASDAQ: MYGN) has secured a new $200 million credit facility from OrbiMed, a leading healthcare investment firm. The five-year senior secured term loan includes $125 million in immediate funded capital and an option for an additional $75 million available until June 30, 2027.

The facility matures on July 31, 2030, with an interest rate based on one-month SOFR plus 6.50% annually (SOFR floor of 2.50%). This new arrangement replaces Myriad's previous ABL facility and is secured by substantially all company assets. The funding strengthens Myriad's capital position, providing over $200 million in accessible capital to support its growth strategy.

Positive

• Secured $200 million credit facility with $125 million immediate funding
• Option for additional $75 million available until June 30, 2027
• Extended maturity timeline until July 31, 2030
• Partnership with OrbiMed, a leading healthcare investment firm
• Access to over $200 million in total capital for growth initiatives

Negative

• High interest rate of SOFR plus 6.50% with 2.50% SOFR floor
• Facility secured by substantially all company assets
• Increased debt burden on company's balance sheet

Insights

Financial Analyst

Myriad Genetics secured a $200M credit facility, strengthening liquidity but increasing interest costs in their growth-focused capital structure.

Myriad Genetics has significantly bolstered its financial flexibility with a new $200 million credit facility from healthcare investment specialist OrbiMed. The structure includes $125 million in immediately available capital plus an option for an additional $75 million until June 2027. This five-year facility runs until July 2030 and replaces the company's previous asset-based lending arrangement.

The interest rate terms are noteworthy - SOFR plus 6.50% with a SOFR floor of 2.50%. With current SOFR around 5.31%, Myriad's effective interest rate would be approximately 11.81%, reflecting a relatively high cost of capital. This suggests lenders perceive some risk, though securing backing from a specialized healthcare investor like OrbiMed provides strategic validation.

The collateral requirements are substantial, with the facility secured by "substantially all the assets" of Myriad and its subsidiaries, indicating a comprehensive security package for lenders. Combined with existing cash reserves, management states this gives them access to over $200 million in capital to execute their growth strategy.

This move signals confidence in the company's expansion plans and product portfolio, particularly in molecular diagnostics and precision medicine. However, investors should note the significant interest expense that will impact future earnings. The company has promised more details on their growth strategy in their upcoming earnings call, which will be crucial for evaluating the potential return on this substantial financing arrangement.

SALT LAKE CITY, July 31, 2025 (GLOBE NEWSWIRE) -- Myriad Genetics, Inc. (NASDAQ: MYGN), a leader in molecular diagnostic testing and precision medicine, today announced it has closed a five-year senior secured term loan credit facility providing up to $200 million of capital from OrbiMed, a leading global healthcare investment firm. The facility includes $125 million of funded capital with an option to borrow up to an additional $75 million until June 30, 2027. This facility matures on July 31, 2030, and bears interest at a rate based upon the one-month secured overnight financing rate (SOFR) plus 6.50% per year, subject to a SOFR floor of 2.50% per year.

“We are excited to partner with OrbiMed, a leading global healthcare investment firm. We value their insight and financial backing, which supports our ability to pursue our near-term objectives and long-term growth plan,” said Scott Leffler, chief financial officer, Myriad Genetics. “Between this credit facility and our cash and cash equivalents, we now have access to more than $200 million in capital to support the company’s growth strategy, which we will speak to in more detail on our upcoming second quarter earnings call.”

“We are pleased to partner with Myriad to support the company’s growth strategy,” said Matthew Rizzo, General Partner of OrbiMed. “We believe Myriad’s portfolio of diagnostic tests provide critical insights that enable healthcare providers to deliver better care to patients.”

The new credit facility with OrbiMed replaces Myriad's previous ABL facility. The credit facility is secured by substantially all the assets of Myriad Genetics and its subsidiaries. Additional details on the credit facility are included in the company’s Current Report on Form 8-K filed with the Securities and Exchange Commission on July 31, 2025. Evercore served as exclusive financial advisor to Myriad Genetics on this transaction.

About Myriad Genetics
Myriad Genetics is a leading molecular diagnostic testing and precision medicine company dedicated to advancing health and well-being for all. Myriad Genetics develops and offers molecular tests that help assess the risk of developing disease or disease progression and guide treatment decisions across medical specialties where molecular insights can significantly improve patient care and lower healthcare costs. For more information, visit www.myriad.com.

About OrbiMed
OrbiMed is a leading healthcare investment firm, with over $17 billion in assets under management. OrbiMed invests globally across the healthcare industry, from start-ups to large multinational corporations, through private equity funds, public equity funds, and royalty/credit funds. OrbiMed seeks to be a capital provider of choice, providing tailored financing solutions and extensive global team resources to help build world-class healthcare companies. OrbiMed's team of over 130 professionals is based in New York City, London, San Francisco, Shanghai, Hong Kong, Mumbai, Herzliya, and other key global markets.

Safe Harbor Statement
This press release contains “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995, including statements regarding the term loan credit facility and how it supports the company’s ability to pursue its near-term objectives and long-term growth plan. These “forward looking statements” are management’s expectations of future events as of the date hereof and are subject to known and unknown risks and uncertainties that could cause actual results, conditions, and events to differ materially and adversely from those anticipated. Such factors include those risks described in the company’s filings with the U.S. Securities and Exchange Commission, including the company’s Annual Report on Form 10-K filed on February 28, 2025, as well as any updates to those risk factors filed from time to time in the company’s Quarterly Reports on Form 10-Q or Current Reports on Form 8-K. Myriad is not under any obligation, and it expressly disclaims any obligation, to update or alter any forward-looking statements, whether as a result of new information, future events or otherwise except as required by law.

Investor Contact
Matt Scalo
(801) 584-3532
IR@myriad.com

Media Contact
Katie Schraml
(224) 875-4493
PR@myriad.com

FAQ

What is the size and structure of Myriad Genetics' (MYGN) new credit facility?

Myriad secured a $200 million credit facility, including $125 million in immediate funded capital and an option for an additional $75 million available until June 30, 2027.

What are the terms of MYGN's new credit facility with OrbiMed?

The facility matures on July 31, 2030, with an interest rate of SOFR plus 6.50% annually (SOFR floor of 2.50%) and is secured by substantially all company assets.

How will the new credit facility impact Myriad Genetics' financial position?

The facility provides Myriad with access to over $200 million in total capital to support its growth strategy, combining the new credit facility with existing cash and cash equivalents.

Who provided the new credit facility to Myriad Genetics?

OrbiMed, a leading global healthcare investment firm, provided the credit facility to Myriad Genetics.

What did Myriad Genetics replace with this new credit facility?

The new credit facility with OrbiMed replaces Myriad's previous ABL (Asset-Based Lending) facility.