Emergent BioSolutions amends credit agreement, reduces commitments

By Wendy Van Sickle

Columbus, Ohio, April 30 – Emergent BioSolutions Inc. on April 29 entered a consent, waiver and seventh amendment to the amended and restated credit agreement dated Oct. 15, 2018 with Wells Fargo Bank, NA as administrative agent, according to an 8-K filing with the Securities and Exchange Commission.

The amendment reduces available commitments under the revolver to $270 million through July 30 to $225 million from July 31 through Oct. 30 and to $200 million on Oct. 31, 2024 and thereafter; increases the interest margin by 200 basis points to 850 bps for SOFR loans; and requires the company to raise equity or unsecured debt of at least $85 million by July 31, or such later date on or before Sept. 29, as agreed to by the administrative agent, provided that such requirement will be reduced by the total net cash proceeds received from certain dispositions that are applied to reduce amounts outstanding under the revolver.

In addition, under the amendment, the company is obligated to apply 100% of the net cash proceeds received from certain dispositions to the prepayment of amounts outstanding under the revolver, except where such proceeds exceed $85 million, in which case such mandatory prepayment of the revolver will no longer be required. Mandatory prepayment of the term loan will not be required unless and until the aggregate net proceeds from such dispositions exceed $85 million, at which point 100% of such proceeds must be used toward repayment of amounts outstanding under the term loan.

The company is also subject to a monthly minimum consolidated EBITDA covenant through May 15, 2025 and a monthly maximum capital expenditures covenant through March 31, 2025, a minimum liquidity requirement and additional financial statement reporting and business plan forecast obligations.

Emergent paid an amendment fee equal to 0.5% of the total credit exposure as of the amendment effective date and will be required to pay an additional amendment fee of 1% of total credit exposure at Dec. 31, 2024 and each month thereafter.

Emergent BioSolutions is a Gaithersburg, Md.-based life sciences company focused on providing specialty pharmaceutical products and contract development and manufacturing services that address several categories of public health threats.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.