Celgene increases revolver to $1.75 billion, extends term by two years

By Marisa Wong

Madison, Wis., April 20 – Celgene Corp. entered into a second amended and restated credit agreement on April 17 to increase total commitments under its existing senior unsecured revolving credit facility to $1.75 billion from $1.5 billion and extend the term of the credit facility to April 17, 2020 from April 18, 2018, according to an 8-K filing with the Securities and Exchange Commission.

Citigroup Global Markets Inc., J.P. Morgan Securities LLC, Morgan Stanley Senior Funding, Inc. and Merrill Lynch, Pierce, Fenner & Smith Inc. are the joint lead arrangers and joint bookrunners. Citibank, NA is the administrative agent, JPMorgan Chase Bank, NA and Morgan Stanley Senior Funding are syndication agents, and Bank of America, NA is the documentation agent.

The company has the right to increase the amount of the restated credit facility up to a maximum of $2 billion. Increases may not be made more than once a year.

The amounts available under the facility may be borrowed in dollars for working capital, capital expenditures and other corporate purposes. No proceeds were drawn down as of last Friday.

Borrowings will bear interest at Libor plus an applicable margin based on the company’s public debt ratings. The applicable margin ranges from 75 basis points to 150 bps.

The credit agreement includes a number of negative covenants, events of default and some financial maintenance covenants.

The global biopharmaceutical company is based in Summit, N.J.

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