MindWalk secures $30M unsecured credit line at 7% fixed rate

MindWalk Holdings Corp. (NASDAQ: HYFT) has entered into a binding commitment with Sanabil (Cayman) for a senior unsecured revolving credit facility of up to $30 million, according to a press release from the company.

The facility carries a fixed annual interest rate of 7.00%, accruing only on amounts drawn. The initial term is 36 months, with an option to extend by 12 months by mutual agreement. MindWalk said the facility includes no financial maintenance covenants, no warrants, and no equity conversion features, and requires no pledge of company assets.

The company will pay a one-time 1.00% opening fee, with no unused line fee. MindWalk has no obligation to draw on the facility and may repay amounts without penalty. There is no material adverse change condition to closing.

MindWalk said it intends to use the funds for its biologics programs, commercial expansion, working capital, and general corporate purposes. The term sheet is binding on both parties, and the two sides will negotiate a definitive credit agreement with a target closing within 60 days.

"This facility funds our biologics programs and our commercial build without issuing a single share," said Jennifer Bath, PhD, President and Chief Executive Officer of MindWalk. "We chose debt over equity for a simple reason. We were not prepared to raise capital of this size in equity at the current share price, and we did not have to."

Sanabil (Cayman) is a private investment and structured finance firm based in George Town, Grand Cayman, Cayman Islands. MindWalk said it expects to file the definitive credit agreement as a material contract exhibit upon closing.

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