Ligand inks $75 million revolving credit facility via Citibank

By Mary-Katherine Stinson

Lexington, Ky., Oct. 18 – Ligand Pharmaceuticals Inc. on Oct. 12 entered into a $75 million revolving credit facility which matures on Oct. 12, 2026, according to an 8-K filing with the Securities and Exchange Commission.

Borrowings under the facility will bear interest at SOFR plus a margin ranging from 175 basis points to 250 bps linked to the company’s leverage ratio. Initially, the margin will be 175 bps.

The commitment fee payable on the unused revolving commitments ranges from 30 bps to 45 bps. Initially, it will be 30 bps.

The company is also required to pay certain fees to the administrative agent and letter-of-credit issuer under the revolver.

Financial covenants include the requirement to maintain a leverage ratio of no greater than 2.5x, increasing to 3x with respect to the fiscal quarter after a permitted acquisition occurs and the three fiscal quarters after that, and maintaining minimum consolidated EBITDA for any trailing four-quarter period of not less than $45 million.

During the facility’s term, amounts may be borrowed, repaid and re-borrowed, subject to voluntary reductions of the swingline, letter-of-credit and revolving credit commitments.

As of Oct. 17, the credit agreement remains undrawn and there is no outstanding balance.

Citibank, NA is the administrative agent, swingline lender and letter-of-credit issuer as well as the lead arranger and bookrunner.

Ligand is a San Diego-based biopharmaceutical company focused on developing and acquiring technologies for the pharmaceutical industry.

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