BioMarin Pharmaceutical entered into a $200 million revolving credit facility with Bank of America as administrative agent and swing line lender and Citibank as L/C issuer. None of the loans were drawn at closing.
According to a related 8-K filing, the company will be entitled to draw funds at its discretion until the facility matures on October 19, 2021, at which time all outstanding amounts become due and payable.
BioMarin will use the proceeds of the facility to finance ongoing working capital needs (including timing differences resulting from the strategic management of short-term investments) and for other general corporate purposes.
The loans under the facility will bear interest at a floating rate of interest per annum based either on, at company’s option, LIBOR or LIBOR successor rate, plus an applicable margin ranging from 1.00% to 1.95% per annum, based upon the company’s net leverage ratio and EBITDA for each of the two most recently ended quarters, or the base rate, generally the prime lending rate, plus an applicable margin ranging from 0.00% to 0.95%, based upon BioMarin’s net leverage ratio and EBITDA for each of the two most recently ended quarters.
Commitment fees payable on the undrawn amount range from 0.15% to 0.35% per annum based upon BioMarin’s net leverage ratio and EBITDA for each of the two most recently ended quarters.
BioMarin’s obligations under the facility are currently guaranteed by its direct subsidiary, California Corporate Center Acquisition.
BioMarin is a global biotechnology company that develops and commercializes innovative therapies for people with serious and life-threatening rare disorders. The company’s portfolio consists of seven commercialized products and multiple clinical and pre-clinical product candidates.
