Eton Pharmaceuticals, Inc. 8-K

What Happened

• Eton Pharmaceuticals, Inc. announced a sixth amendment to its credit agreement with SWK Funding LLC (effective April 9, 2026; filed April 15, 2026).
• The amendment reduces the interest rate from SOFR + 6.75% to SOFR + 6.55% and lowers the SOFR floor from 5.00% to 2.75%.
• The amendment extends the interest-only period to November 2026 and gives the company the option to make principal payments in May 2026 or defer principal payment to November 2026. The credit agreement’s maturity remains December 2027. No fees were paid to SWK for the amendment.

Key Details

• Interest rate change: from SOFR + 6.75% → SOFR + 6.55%.
• SOFR floor reduced: 5.00% → 2.75%.
• Interest-only period extended through November 2026; principal payment optional in May 2026 or deferred to November 2026.
• Maturity date unchanged: December 2027; no amendment fees paid.

Why It Matters

• The lower spread and reduced SOFR floor can decrease Eton’s interest expense compared with prior terms, improving near-term cash interest costs if market rates are below the prior floor.
• Extending the interest-only period and allowing flexible principal timing provides the company with additional near-term cash-flow flexibility.
• The amendment does not change the loan maturity (December 2027), so it adjusts payment terms and cost but does not extend the ultimate repayment date.