BofA Agents PharMerica Credit Agreement
PharMerica announced it successfully closed on a new credit agreement. PharMerica will use the facilities for general corporate purposes and to pursue acquisition opportunities.
Participating lenders for the new credit agreement include Bank of America as administration agent, JPMorgan Chase Bank as syndication agent; and U.S. Bank, Citibank, MUFG Union Bank, BBVA Compass Bank and Suntrust Bank as co-documentation agents.
Under the new credit agreement, the company borrowed a term loan of $225 million and will have access to a committed revolving credit facility of $310 million. The new credit agreement increases the size of PharMerica’s committed revolving line of credit by $110 million, as compared to the revolving line of credit under the company’s prior credit agreement, while lowering the company’s interest rate by 75 basis points. In addition, the company may request commitments for additional term loans or revolving loans under the new credit agreement as long as they do not exceed $190 million in the aggregate, an increase of $90 million over the amount of incremental commitments and loans permitted under the Company’s existing credit agreement. Furthermore, the principle amortization schedule associated with the term loan is 5% annually, commencing with the second year of the five-year facility, with the remaining 80% due upon the expiration of the facility in September 2019.
“We are pleased to have secured this financing package, which will enhance financial flexibility and reduce the cost of capital, allowing us to us to take advantage of value-enhancing growth opportunities,” said Greg Weishar, PharMerica’s CEO. We are positioning PharMerica to compete aggressively for market share through organic growth and acquisitions, and we are confident we will continue to succeed and drive shareholder value creation.”
PharMerica is an institutional pharmacy services company that services healthcare facilities in the U.S.