OPKO Health Enters Note Amendment, Issues $125M Senior Secured Notes

What Happened

• OPKO Health, Inc. announced on August 13, 2026 that it amended its July 17, 2024 Note Purchase Agreement and issued $125,000,000 of additional senior secured notes. The Notes mature on July 17, 2044 and carry interest tied to 3‑month SOFR (with a 4.0% floor) plus 7.5% per annum, with interest paid quarterly as determined by profit-share (royalty) payments received by EirGen from Pfizer.

Key Details

• Amount issued: $125,000,000 in Additional Notes under the Amended Agreement (in addition to existing notes).
• Interest: 3‑month SOFR subject to a 4.0% floor, plus 7.5% — effectively a minimum ~11.5% annual rate when SOFR is below the floor; interest paid quarterly from Pfizer royalty receipts to EirGen.
• Security and priority: Notes are secured by EirGen’s royalty interest in mazdutide (under a Feb. 25, 2010 license with Eli Lilly). If Pfizer royalty receipts in a quarter are insufficient to cover interest, payments are first made from Mazdutide Payments (capped at $187.5M, subject to certain indemnities/expenses); any remaining excess funds apply to principal.
• Guarantors and covenants: OPKO Biologics Ltd. and EirGen Pharma Ltd. guarantee the Notes and granted security interests in certain assets. The amendment includes customary negative covenants, financial covenants and events of default. The issuance was a private placement to accredited investors/QIBs (exempt from registration).

Why It Matters

• The company raised $125M of secured debt backed by future royalty streams rather than by unrestricted cash, increasing leverage and creating new repayment priority tied to specific royalty receipts. Interest payments depend on those royalties, so cash interest coverage is linked to future product sales and profit-share timing.
• The effective interest burden is relatively high (minimum ~11.5% when SOFR is below the floor), which may affect OPKO’s cash flow needs and financial flexibility. The $187.5M cap on Mazdutide Payments limits the lenders’ recovery from that source.
• Investors should watch upcoming quarterly reports (the Amended Agreement and Additional Note form will be filed as exhibits to OPKO’s 10‑Q for the quarter ended Sept. 30, 2026) for full terms, any covenant triggers, royalty receipts, and whether these notes impact liquidity or credit metrics.