Emergent BioSolutions, a company that provides solutions for public health threats, entered into a new credit agreement on Sept. 30, 2024 providing for an asset-based revolving loan (ABL) facility with the lenders party thereto and Wells Fargo Bank as administrative agent. The credit agreement provides for revolving loan commitments in an aggregate principal amount up to $100 million (availability is based on a borrowing base set forth therein) with a fixed maturity date of Sept. 30, 2029, subject to early maturity triggers based on the maturity of its other material indebtedness. The new credit facility brings additional liquidity to support Emergent’s multi-year transformation plan. As of Sept. 30, 2024, Emergent had a cash balance of approximately $150 million and undrawn access to $100 million under the ABL.
“We are pleased to have successfully closed on our new ABL credit facility with favorable terms and an extended maturity, which is further evidence of Emergent’s strengthened balance sheet and financial position,” Joe Papa, president and CEO of Emergent, said. “As we continue to execute on our multi-year transformation plan, we have made significant progress on our stabilization efforts to date, all while staying the course on strategic goals, to deliver long-term value and sustainable growth in the future.”
This agreement follows Emergent’s Sept. 3, 2024 announcement that it successfully refinanced its debt and closed a new credit facility agreement with Oak Hill Advisors for a term loan of up to $250 million.
