ADMA Biologics, a commercial biopharmaceutical company dedicated to manufacturing, marketing and developing specialty plasma-derived biologics, amended the terms of its existing senior credit facility with Hayfin Capital Management, which matures in March 2027.
“This credit agreement amendment with Hayfin enhances the company’s already strong financial position by reducing our interest rate as well as providing for greater prepayment flexibility as ADMA continues to explore value creating opportunities for its stockholders,” Adam Grossman, president and CEO of ADMA, said. “We appreciate Hayfin’s continued support and collaboration of our efforts as ADMA continues on its path to profitability.”
“We commend the ADMA team for their continued execution, and we are pleased to be amending the credit terms to account for the Company’s improving financial prospects on the pathway to profitability,” Howard Rowe, managing director of Hayfin, said. “Our continued commitment to ADMA and our willingness to amend the previously underwritten terms speak to the above-expectation commercial execution.”
The amended credit agreement provides for multiple changes. First, there will be a reduction of 1% in the nominal interest expense on ADMA’s current note. This will result in a lowered borrowing rate of SOFR plus 8.5%. Included in this base rate, and consistent with the existing terms of the Hayfin facility, the company may elect to pay up to 2.5% of the interest in kind, with the remaining portion of the interest payable in cash. Secondly, within the first 24 months after the amendment closing date, among other provisions, there will be a newly structured 50% waiver of the prepayment fee in connection with an acquisition of the company or other strategic transactions.
