ANI Pharmaceuticals adds $118 million delayed-draw loan, ups revolver

By Sarah Lizee

Olympia, Wash., Dec. 27 – ANI Pharmaceuticals, Inc. entered into an amended and restated five-year senior secured credit facility on Thursday with Citizens Bank, NA as lead arranger and administrative agent to add an up to $118 million delayed-draw term loan facility, according to an 8-K filing with the Securities and Exchange Commission.

The amendment also increases the borrowing capacity under the revolving line of credit by $25 million to $75 million.

Also, the amendment extends the maturity of the credit facility, including the outstanding $72.2 million initial term loan, to Dec. 27, 2023 from Dec. 29, 2022.

Subject to some conditions, the company may borrow the delayed-draw term loans at any time prior to Dec. 1, 2019, at which time any portion of the delayed-draw term loan facility that remains undrawn will be automatically cancelled.

The total size of the amended credit agreement is $265.2 million following the amendment and restatement.

The amended credit facility continues to be secured by the assets of the company and guaranteed by some subsidiaries of the company.

The company may use the proceeds of revolving loans for working capital and other general corporate purposes and may only use the proceeds from the delayed-draw term loans, if borrowed, to refinance the company’s outstanding 3% convertible senior notes due 2019.

Term loans bear interest at Libor plus 150 basis points to 275 bps, depending on the company’s total leverage ratio.

The revolving commitment fee and delayed-draw ticking fee both range from 25 bps to 50 bps, also depending on leverage.

Financial covenants include a maximum total net leverage ratio, which initially will be no greater than 3.75 to 1, and a minimum fixed charge coverage ratio which will be greater than or equal to 1.25 to 1.

Bank of Tokyo-Mitsubishi UFJ, Ltd. and Huntington National Bank acted as joint lead arrangers, while Regions Bank acted as documentation agent.

Baudette, Minn.-based ANI is a specialty pharmaceutical company targeting development of narcotics, oncolytics, hormones and steroids and extended-release and combination products.

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