Specialty generic pharmaceutical company Teligent entered into a new senior-secured asset-based first lien revolving credit agreement with ACF Finco I, a limited partnership affiliated with Ares Management, as administrative agent and a definitive second lien credit agreement with Ares Capital as administrative agent.
The first lien revolver and second lien term loans (including delayed-draw term loans) are in the aggregate principal amounts of $25 million and up to $95 million, respectively.
The $25 million revolver will be used to redeem or repurchase in part the company’s 3.75% senior notes maturing in December 2019 and manage working capital needs.
$80 million of the term loans will be used to redeem or repurchase in part the company’s 3.75% senior notes maturing in December 2019, to refinance a portion of its existing $25 million term loan facility and to pay fees, costs and expenses in connection with the foregoing.
$15 million of additional term loans will be available to Teligent in 2019, subject to satisfaction of certain conditions to fund the installation of a high-speed filling line in the company’s recently expanded sterile injectable manufacturing site in Buena, NJ.
“With the satisfaction of the final closing condition, filing of our second quarter 10-Q/A and third quarter 10-Q occurring on December 12, 2018, we are pleased to announce that Teligent has entered into definitive agreements. The funding provided by these facilities will enable the Company to continue executing on its strategy on bringing topical, injectable, complex and ophthalmic products to patients.” said Jason Grenfell-Gardner, Teligent CEO.