Karyopharm Therapeutics will issue 20,000 Preferred Shares to pay $20.0 million in fees tied to a lender and noteholder forbearance agreement. The arrangement gives the company additional time to advance its myelofibrosis program, negotiate with lenders, pursue strategic alternatives or raise equity, while creditors retain remedies for specified defaults.

Key Highlights

  • Holders of 100% of Karyopharm’s outstanding 2028 and 2029 notes joined the consenting parties.
  • The forbearance period can end as early as October 15, 2026.
  • Preferred stock conversion is priced at $1.62 per common share and initially capped at 19.99% of voting power.

Karyopharm Therapeutics Inc. (NASDAQ: KPTI) is expected to issue 20,000 shares of preferred stock to pay $20.0 million in fees owed to certain consenting parties. The arrangement gives Karyopharm additional time to advance its myelofibrosis program, negotiate with lenders, pursue strategic alternatives or complete an Equity Capital raise.

$20.0 Million Fee Payment Takes Preferred Form

The participating noteholders represent 100% of the outstanding principal amount of the 9.00% convertible senior notes due in 2028 and 2029. Karyopharm did not pay an approximately $15.8 million principal installment due under its Credit agreement and does not expect to pay cash interest due on September 30, 2026. The shares are expected to be issued at $1,000 each and carry a $1,000 Liquidation preference, with issuance expected on September 17, 2026. Holders may convert at $1.62 per common share, subject to customary anti-dilution adjustments.

Creditors Retain Remedies During Limited Forbearance

The agreement pauses Consenting Parties’ remedies for the specified defaults during the forbearance period, but does not waive those defaults or extend payment deadlines. The period ends at the earliest of October 15, 2026, certain Bankruptcy or enforcement events, termination of other accommodations, or specified termination notices. It can also end after a material adverse effect, consolidated Liquidity below $10.0 million, or FDA refusal or Withdrawal of the myelofibrosis sNDA. After termination, overdue amounts become immediately payable and the Consenting Parties may exercise their rights and remedies, including acceleration. Credit Agreement obligations carry an additional 2.00% annual interest during applicable payment defaults, while defaulted note amounts incur an additional 2.00% per year. Before Shareholder consent, preferred-stock conversion issuance is limited to 19.99% of common-stock voting power, and Karyopharm undertakes to obtain that consent by March 15, 2027.