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Amneal enters into $500 million asset-based revolving credit facility
By Sarah Lizee
Olympia, Wash., May 7 – Amneal Pharmaceuticals, Inc. entered into a revolving credit agreement on Friday with JPMorgan Chase Bank, NA as administrative and collateral agent providing for an up to $500 million asset-based revolving credit facility, according to an 8-K filing with the Securities and Exchange Commission.
Up to $25 million of the revolver is available for issuances of letters of credit.
The facility matures on May 4, 2023.
Interest is initially Libor plus 150 basis points per annum. The applicable margin may be reduced or increased by 25 bps based on step-downs and step-ups determined by the average historical excess availability.
There is a 37.5 bps commitment fee per annum, subject to a step-down to 25 bps, also determined by the average historical excess availability.
The facility requires that Amneal maintain a minimum fixed charge coverage ratio of 1 to 1, tested only if availability (plus the amount by which the borrowing base exceeds commitments, subject to a cap of 2.5%) is less than either (a) the greater of $25 million and 10% of the lesser of the commitments and the borrowing base, in either case for two consecutive business days, or (b) the greater of $18.75 million and 7.5% of the lesser of the commitments and the borrowing base.
As previously reported, Amneal also obtained a $2.7 billion seven-year term loan B, the proceeds of which were used to refinance currently outstanding debt at Amneal Pharmaceuticals LLC and Impax Laboratories Inc. in connection with the acquisition of Impax.
Amneal is a Bridgewater, N.J.-based generic pharmaceutical manufacturer.
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