ADMA Biologics, a commercial biopharmaceutical company dedicated to manufacturing, marketing and developing specialty plasma-derived biologics, executed a definitive credit agreement with Ares Management‘s credit funds for $135 million in total senior secured credit facilities, including a $72.5 million asset-backed revolving credit facility and a $62.5 million term loan. The proceeds of the senior secured credit facilities were fully drawn at closing and used, along with existing cash, to repay all obligations under the prior Hayfin Capital Management senior secured credit facility.
“This non-dilutive credit facility with Ares materially reduces ADMA’s nominal interest rate and significantly lowers our total debt by 15%, which further supports ADMA’s rapid earnings growth outlook,” Adam Grossman, president and CEO of ADMA, said. “We have assertively chosen to use a portion of our available cash in a non-dilutive manner, to decrease our overall debt while concurrently improving our borrowing rate. This decision is a testament to our confidence in the sustained growth of earnings and the anticipated ongoing generation of cash. We look forward to finishing 2023 on a high note and embarking on 2024 from a position of strength.”
“Our investment in ADMA, with its strong commercial position in treating patients with rare immunodeficiencies, is consistent with our strategy to back innovative life sciences businesses,” Chris York, partner, Ares U.S. Direct Lending, said. “We look forward to supporting ADMA in this new phase of growth and development.”
Key features of this new credit facility include:
- $135 million senior secured credit facilities, comprised of a $72.5 million asset-backed revolver and a $62.5 million term loan
- Four-year interest only maturity period
- The full amount of the loan was fully drawn at the initial funding
- The proceeds were used to refinance ADMA’s senior credit facility with Hayfin Capital Management