Amneal Pharmaceuticals gets $350 million refinanced five-year revolver

By Rebecca Melvin

Concord, N.H., June 3 – Amneal Pharmaceuticals Inc. subsidiary Amneal Pharmaceuticals LLC refinanced its existing credit agreement on June 2 with a replacement $350 million senior secured revolving credit facility maturing five years from the closing date, according to an 8-K filed with the Securities and Exchange Commission.

The new agreement terminated commitments under the existing credit agreement dated May 4, 2018. The previous agreement provided for loans and letters of credit up to $500 million and was scheduled to mature on May 4, 2023. As of June 2, there were no outstanding amounts under the previous facility.

Up to $25 million of the new revolver will be available for issuing letters of credit, and up to $35 million will be available for issuing swingline loans.

The new credit agreement allows the borrower to request an incremental increase in the revolving commitments by up to $150 million.

Interest on the revolver is SOFR plus 125 basis points, and the applicable margin for ABR loans is initially 25 bps. Going forward, the margins will adjust, ranging from 125 bps to 150 bps for SOFR loans and 25 bps to 50 bps for ABR loans, determined by the average historical excess availability. The interest rate is subject to a 0% SOFR floor and a 1% ABR floor.

There is also a 25 bps per year commitment fee based on the average daily unused amount.

Proceeds may be used for capital expenditures, acquisitions, working capital needs and other general purposes, subject to covenants.

The credit agreement contains negative covenants that, among other things, restrict the company’s and certain subsidiaries’ ability to incur additional debt. The new revolver also includes a financial covenant requiring the borrower to maintain a minimum fixed-charge coverage ratio if certain borrowing conditions are met.

Also on June 2, Amneal and some subsidiaries and administrative agent and collateral agent Truist Bank entered into an ABL guarantee and collateral agreement that grants the administrative agent a security interest on assets to secure obligations under the credit agreement and related documents.

Truist Securities Inc., JPMorgan Chase Bank NA and Bank of America NA are bookrunners, joint lead arrangers and co-syndication agents. MUFG Union Bank NA is documentation agent.

The generic drug maker is based in Bridgewater, N.J.

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