NeoGenomics makes covenant changes to $150 million credit agreement

By Wendy Van Sickle

Columbus, Ohio, March 23 – NeoGenomics Laboratories, Inc. made some changes to its credit agreement, which provides for a $75 million revolving credit facility and a $75 million term loan facility and was originally entered into on December 2016, according to an 8-K filing with the Securities and Exchange Commission.

Thursday’s amendment restates the definition of consolidated EBITDA by providing for a one-time additional add-back for the fiscal quarter ended Sept. 30, 2017 for loss of gross margin resulting from the impact of hurricanes on NeoGenomics, Inc. and its subsidiaries. This was in addition to one-time costs that had already been added back to adjusted EBITDA.

The amendment further restates the definition of consolidated leverage ratio to permit the ratio as of the end of any fiscal quarter of the borrower to be greater than: for any fiscal quarter ending on or after March 31, 2017 to and including Dec. 31, 2018, 3.75x; for any fiscal quarter ending on or after March 31, 2019 to and including Dec. 31, 2019, 3.5x; for any fiscal quarter ending on or after March 31, 2020 to and including Dec. 31, 2020, 3.25x, and for any fiscal quarter ending on or after March 31, 2021 and thereafter, 3x. This change has the impact of increasing NeoGenomics Laboratories’ overall borrowing capacity from 2018 through 2020.

Regions Bank NA is the administrative agent.

Based in Fort Myers, Fla., NeoGenomics is a cancer genetics diagnostics testing company.

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