Shire amends loan, increasing revolver size, revising covenants

By Sara Rosenberg

New York, July 25 - Shire plc amended its credit facility, increasing the revolver to $1.2 billion from $1 billion and revising financial covenants to make them less restrictive, according to an 8-K filed with the Securities and Exchange Commission Wednesday.

Under the amendment, the allowable ratio of net debt to EBITDA was increased to 3.5:1. And, following an acquisition or in-licensing payment for a consideration, which includes a cash element of at least $250 million, the company may elect to increase the ratio to 4.0:1 for a limited period.

In addition, the company's original $1 billion term loan and $300 million term loan have been repaid in full.

The amendment was completed on July 19.

Barclays is the agent on the deal.

Shire is a Basingstoke, England-based pharmaceutical company.

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