Pharmaceutical manufacturer ANI Pharmaceuticals entered an amended and restated five-year senior secured credit facility for up to $265.2 million with Citizens Bank as administrative agent and lead arranger.
The Bank of Tokyo-Mitsubishi UFJ and Huntington National Bank acted as joint lead arrangers on the transaction, while Regions Bank acted as documentation agent. U.S. Bank and J.P. Morgan Chase Bank provided additional funding on the facility.
The facility amended ANI’s current $125 million facility and is structured to provide ANI flexibility in refinancing its 3.00% convertible senior notes due 2019.
The principal feature of the facility is a new $118 million delayed draw term loan available to refinance convertible notes. The term loan is fully committed by the bank group and can be accessed by ANI at any time and in multiple tranches through December 1, 2019, subject to satisfaction of certain conditions precedent.
The second feature is the extension of $72.2 million of term loan A debt currently outstanding under the existing facility. The facility also increases the existing $50 million senior secured revolving credit facility to $75 million. Both the term loan and the revolver are undrawn as of this time.
Interest on the facility is LIBOR-based and generally consistent with ANI’s current borrowing arrangements with the bank group. The facility is secured by the assets and equity interests of ANI and guaranteed by certain of its subsidiaries.
Arthur S. Przybyl, ANI’s president and CEO stated, “The expansion of our existing credit facility is a testament to the financial strength of ANI and signals our intent to refinance our Convertible Notes in a shareholder friendly manner.”
“At Citizens, we try to think about the needs of our clients from their point of view and offer holistic solutions,” said Daniel K. Fitzpatrick, executive president of the Mid-Atlantic Region and head of National Industry Verticals at Citizens. “Leading flexible credit facilities so valued clients such as ANI Pharmaceuticals can grow is just one of the ways that Citizens delivers substantial value for our clients at every stage of their business life cycle.”
