Heron Therapeutics completes $212.7 million capital restructuring

Heron Therapeutics Inc. (NASDAQ: HRTX) completed a comprehensive capital restructuring involving multiple financing components totaling approximately $212.7 million, according to a company statement.

The biotechnology company entered into a new senior credit facility with Hercules Capital Inc. that provides $110 million in committed capital at closing, with an additional $40 million available in two $20 million tranches upon achieving certain milestones. The credit facility is due in 2030.

Heron also reached an exchange agreement with the existing holder of its 1.5% senior convertible notes due 2026, retiring outstanding principal through approximately $125 million in cash repayment and $25 million converted into common stock. The company issued $35 million of new 5% senior convertible notes due 2031.

A private placement with select investors generated $27.7 million in gross proceeds through the issuance of common and preferred equity.

"We've worked diligently to streamline our capital structure and position Heron for growth," said Craig Collard, Chief Executive Officer. "This refinancing strengthens our balance sheet, eliminates near-term debt maturities, and supports our commercial execution and pipeline priorities moving forward."

The company used the proceeds to retire prior convertible notes and its working capital facility while providing additional working capital for commercial and development initiatives. The refinancing transactions were entered into on August 8, 2025, and are expected to close on August 12, 2025.

Leerink Partners served as exclusive financial advisor and placement agent, while DLA Piper LLP served as legal advisor to Heron. The company will host a conference call on August 8, 2025, at 8:30 a.m. ET to discuss the restructuring.

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