Myriad Genetics secures revolving facility for initial $90 million

By Mary-Katherine Stinson

Lexington, Ky., July 6 – Myriad Genetics, Inc. and certain of its domestic subsidiaries on June 30 entered into a credit agreement with JPMorgan Chase Bank, NA as administrative agent, providing for an asset-based revolving credit facility in an initial maximum principal amount of $90 million, according to an 8-K filing with the Securities and Exchange Commission.

There is an option to increase the credit facility by up to $25 million.

Availability under the facility is subject to a borrowing base, which is the lesser of 85% of the company’s and the guarantors’ eligible accounts receivable plus certain cash maintained with the administrative agent up to $20 million minus any reserves and the total of cash collections from eligible accounts during the most recent 60 consecutive days.

Borrowings bear interest at SOFR+10 basis points CSA plus an applicable margin ranging from 200 to 250 bps depending on the average unused availability under the facility during the prior quarter, with a 0% floor.

The initial margin will be 225 bps.

There are no prepayment penalties.

The agreement requires the company and guarantors to comply with a minimum liquidity and minimum availability test before achieving a fixed-charge coverage ratio of 1x and to maintain it until achieving availability greater than the higher of $10,625,000 and 12.5% of the lesser of the maximum commitment amount and the borrowing base for 30 consecutive days.

JPMorgan and Wells Fargo Bank, NA are the joint bookrunners and lead arrangers for the facility.

Proceeds of the facility were or will be used for the working capital needs and general corporate purposes of the company and its subsidiaries, including permitted acquisitions and debt refinancing.

The genetic testing and precision medicine company is based in Salt Lake City.

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