Latham & Watkins Advises on Heron Therapeutics Credit Restructuring and Senior Credit Facility of Up to US$150 Million

Heron Therapeutics, Inc. (Nasdaq: HRTX) (Heron or the Company), a commercial-stage biotechnology company, announced the completion of a comprehensive capital restructuring designed to enhance the Company's financial flexibility, reduce total debt, and support long-term growth. The multi-faceted refinancing transaction consisted of the following components: a new senior credit facility with Hercules Capital, Inc. (NYSE: HTGC), due in 2030, which provides US$110 million in committed capital at closing and an additional US$40 million in two US$20 million tranches available upon achievement of certain milestones, to be drawn at the Company's discretion; an exchange agreement with the existing holder of Heron's 1.5% senior convertible notes due 2026 to retire outstanding principal, including repayment of approximately US$125 million in cash and conversion of US$25 million into common stock; the issuance and sale of US$35 million of new 5.0% senior convertible notes due 2031; and a private placement with select investors for US$27.7 million in gross proceeds through the issuance of common and preferred equity.

Latham & Watkins advised Hercules Capital in the transaction with a finance team led by partners Dan Van Fleet and Haim Zaltzman, with associate William Lane. Advice was also provided on capital markets matters by partner Eric Rice; and on tax matters by partner Eric Cho.