NeoGenomics Laboratories and certain of its subsidiaries, as guarantors, amended its $150 million credit agreement, consisting of a revolver and a term loan. Regions Bank served as both administrative and collateral agent on the transaction.
According to the related 8-K filing, the amendment restates the definition of consolidated EBITDA by providing for a one-time additional add-back for the fiscal quarter ended September 30, 2017 for loss of gross margin resulting from the impact of hurricanes on the company and its subsidiaries. This is in addition to one-time costs that have already been added back to adjusted EBITDA.
The amendment further restates the definition of consolidated leverage ratio to permit the ratio as of the end of any fiscal quarter to be greater than (i) for any fiscal quarter ending on or after March 31, 2017 to and including December 31, 2018, 3.75 to 1.0, (ii) for any fiscal quarter ending on or after March 31, 2019 to and including December 31, 2019, 3.50 to 1.0, (iii) for any fiscal quarter ending on or after March 31, 2020 to and including December 31, 2020, 3.25 to 1.0, and (iv) for any fiscal quarter ending on or after March 31, 2021 and thereafter, 3.00:1.0.
The amendment also increased NeoGenomics’ overall borrowing capacity from 2018 through 2020.
NeoGenomics operates a network of cancer-focused genetic testing laboratories. It delivers testing services to hospitals, pathologists, oncologists, other clinicians and researchers.
