Pretivm amended its existing credit facility on favorable terms, increasing the loan facility size to $350 million from its current $300 million. The amended loan facility is comprised of a $100 million non-revolving term credit facility and a $250 million revolving credit facility.
The Bank of Nova Scotia acted as administrative agent for the facility. In addition, the Bank of Nova Scotia, ING Capital and SG Americas Securities acted as the joint lead arrangers and joint bookrunners, with ING Capital and SG Americas Securities acting as co-syndication agents.
Pretivm used the term facility to refinance its existing term loan ($100 million on closing date) and the revolving facility will be available for general corporate purposes. The amended loan facility has been made available for a term of four years, maturing on Aug. 8, 2025.
“The increase in available liquidity, combined with our strong financial performance, provides us with flexibility and positions us to seize operational and strategic opportunities as they arise,” Jacques Perron, president and CEO of Pretivm, said.
The term facility is to be repaid by way of 17 equal quarterly installments of principal plus accrued interest, commencing on Sept. 30. Any funds drawn on the revolving facility are repayable in a single lump sum payment (principal and all accrued and unpaid interest) on the maturity date.
The amended loan facility is available by way of U.S. dollar London Interbank Offered Rate (LIBOR) loans that bear interest at LIBOR (or secured overnight financing rate, after the cessation of LIBOR) plus an applicable margin (ranging from 2.5% to 3.5%) determined based on the company’s net leverage ratio, as well as other customary borrowing options. The amended loan facility includes standard and customary finance terms and conditions, including with respect to fees, representations, warranties and covenants.
The terms and conditions of the amended loan facility are set out in the amended and restated credit agreement made among the company and a syndicate of lenders.