Assertio Therapeutics amends credit facility, changes EBITDA covenant

By Sarah Lizee

Olympia, Wash., Jan. 9 – Assertio Therapeutics, Inc. amended its senior secured credit facility, replacing the previous fixed adjusted EBITDA covenant with a trailing 12-month debt-to-adjusted EBITDA ratio that declines over time, according to a press release.

The senior secured debt leverage ratio will be 2.25 to 1 for the first fiscal quarter of 2019, 2 to 1 in the second and third quarters, 1.75 to 1 in the fourth quarter, 1.5 to 1 in the first quarter of 2020, 1.25 to 1 in the second quarter of 2020 and 1 to 1 onwards.

In addition, the company said it will add a trailing four-quarter net sales covenant of $195 million.

“This amendment gives us greater flexibility as we continue to pay down debt and invest in our core business, which will help us build and grow for the future,” Arthur Higgins, president and chief executive officer of Assertio, said in the release.

Assertio Therapeutics, formerly known as Depomed Inc., is a Lake Forest, Ill.-based pharmaceutical company.

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