Alexion Pharmaceuticals amended and restated its credit agreement with Bank of America as administrative agent. The agreement includes a $2.6125 billion term loan and a $1 billion revolving credit facility, the latter consisting of a $300 million domestic tranche and a $700 million global tranche.
According to the related 8-K filing, as of June 7, 2018, $250 million in borrowings and $1.84 million in letters of credit were outstanding under the revolver, while the full amount of the term loan facility was outstanding.
Both revolver and term loan will mature on June 7, 2023. Commencing on June 30, 2019, Alexion will be required to make amortization payments of 5.00% of the aggregate principal amount of the term loan facility annually, payable in equal quarterly installments.
Loans under the agreement will bear interest, at Alexion’s option, at either a base rate or a Eurodollar rate, in each case plus an applicable margin. The applicable margins on base rate loans range from 0.25% to 1.00%, with the margins on Eurodollar loans ranging from 1.25% to 2.00%, in each case based on Alexion’s consolidated net leverage ratio.
The loans under the agreement are guaranteed by certain of Alexion’s foreign and domestic subsidiaries and secured by liens on the subsidiaries’ equity interests, subject to certain exceptions.
Alexion must maintain a ratio of total net debt to EBITDA of 3.50 to 1.00, subject to certain increases following designated material acquisitions. In addition, Alexion must maintain a ratio of EBITDA to cash interest expense of at least 3.50 to 1.00.
Proceeds from the facilities were used to refinance amounts outstanding under the Alexion’s existing credit agreement.
Founded in 1992, Alexion is a global biopharmaceutical company focused on serving patients and families affected by rare diseases. It currently has 2,500 employees serving patients in 50 countries.
