Biopharmaceutical company Alkermes amended its credit agreement with Morgan Stanley as administrative agent to provide for a new class of replacement term loans for up to $284.5 million.

According to a related 8-K filing, Citigroup Global Markets and JPMorgan served as syndication agents for the transaction.

The replacement term loans mature on March 26, 2023 and have reduced interest rates. The amendment makes certain other modifications to the credit agreement as well, including increasing covenant flexibility.

The proceeds of the new facility were used to refinance in full the borrower’s $284.2 million in term loans maturing 2021, previously outstanding under the credit agreement. The new term loan facility bears interest for LIBOR rate loans at LIBOR plus 2.25%, with a LIBOR floor of 0.00%, and for ABR loans at ABR plus 1.25%, with an ABR floor of 1.00%.

The amended credit agreement provides for incremental capacity in an amount of $175 million plus additional amounts so long as the company meets certain conditions, including a specified leverage ratio.

As a fully integrated global biopharmaceutical company, Alkermes applies scientific expertise, proprietary technologies and global resources to develop products that are designed to make a meaningful difference in the way patients manage their disease.