K-V reaches agreement on amendment to facility size and structure

By Sara Rosenberg

New York, Feb. 14 - K-V Pharmaceutical Co. entered into an agreement to amend its credit facility to revise the size to $130 million and provide for multiple draws, according to a news release.

Also under the amendment, covenants will be revised to reflect the company's current projections and timing of certain anticipated future events, including the planned disposition of certain assets, and all past covenant issues will be waived. As a result of the amendment, the minimum liquidity covenant will be reduced to $3 million.

Furthermore, the $60 million payment that was due on March 20 will be extended and split into three payments, with the first $20 million payment due upon closing and funding of an approximately $32 million private placement of class A common stock, the next $20 million due in April and the last $20 million due in August.

In addition to the current outstanding loan balance, future draws against the facility, subject to achievement of certain Makena related milestones, are anticipated to be $15 million in March, $15 million in May and $10 million in each July, August, September and October.

US Healthcare I LLC and US Healthcare II LLC, affiliates of Centerbridge Partners LP, are the lenders on the deal.

The amendment is expected to be completed on Friday.

K-V is a St. Louis-based specialty pharmaceutical company that develops, manufactures, markets and acquires technology-distinguished branded prescription pharmaceutical products.

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