Albany Molecular obtains $200 million term loan, $30 million revolver

By Tali Rackner

Norfolk, Va., July 16 – Albany Molecular Research, Inc. entered into a $230 million senior secured credit agreement on Thursday with Barclays Bank plc as administrative agent, collateral agent, letter-of-credit issuer and swingline lender, according to an 8-K filing with the Securities and Exchange Commission.

The agreement provides for a $200 million six-year term loan and a $30 million five-year revolving credit facility, which includes a $15 million sublimit for standby letters of credit and a $5 million sublimit for swingline loans.

There is an up to $60 million accordion feature.

Interest is equal to Libor plus 475 basis points and will step down to Libor plus 450 bps when the company achieves a certain senior secured leverage ratio.

The credit agreement includes a springing maturity provision such that the loans will mature six months prior to the maturity date of Albany Molecular’s convertible bonds if more than $25 million of the bonds are outstanding and the secured leverage ratio is greater than 1.5 times on that date.

Proceeds will be used to fund wholly owned subsidiary Exirisk Spain, SL’s acquisition of 100% of Gadea Grupo Farmaceutico, SL’s capital stock, working capital and for other general corporate purposes.

Albany, N.Y.-based Albany Molecular is a drug discovery services and manufacturing company.

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