Eagle Pharmaceuticals, Inc. Enters into Credit Agreement with Lenders
January 31, 2017 at 04:44 pm
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On January 26, 2017, Eagle Pharmaceuticals, Inc., or the company, entered into a credit agreement, with JPMorgan Chase Bank, N.A., as administrative agent and the lenders party thereto. The credit agreement provides for a three-year $50 million revolving credit facility, none of which was drawn at closing. The credit facility includes a $5 million letter of credit sub-facility. The company expects to use future loans under the credit facility, if any, for working capital needs and for general corporate purposes. Loans under the credit facility bear interest, at the company's option, at a rate equal to either (a) the LIBOR rate, plus an applicable margin ranging from 2.50% to 3.00% per annum, based upon the total net leverage ratio (as defined in the credit agreement), or (b) the prime lending rate, plus an applicable margin ranging from 1.50% to 2.00% per annum, based upon the total net leverage ratio. The company is required to pay a commitment fee on the unused portion of the credit facility at a rate ranging from 0.35% to 0.40% based upon the total net leverage ratio. The obligations of the company under the credit facility are currently guaranteed by the company's wholly-owned subsidiary, Arsia Therapeutics, Inc. and may in the future be guaranteed by certain material domestic subsidiaries of the company. The obligations of the Loan Parties under the credit agreement and other loan documents are secured, subject to customary permitted liens and other agreed upon exceptions, by a perfected security interest in (a) all tangible and intangible assets of the Loan Parties, except for certain excluded assets, and (b) all of the equity interests of the subsidiaries of the Loan Parties held by the Loan Parties (limited, in the case of the voting equity interests of certain foreign subsidiaries and certain domestic subsidiaries that hold no assets other than equity interests of foreign subsidiaries, to 65% of the voting equity interests of such subsidiaries). The company is permitted to terminate or reduce the revolving commitments of the lenders and to make voluntary prepayments at any time subject to break funding payments. The company is not required to make mandatory prepayments of outstanding indebtedness under the credit agreement other than in the case that the aggregate amount of all outstanding loans and letters of credit issued under the credit facility exceed the aggregate commitment of all lenders under the credit facility.
Eagle Pharmaceuticals, Inc. is a fully integrated pharmaceutical company with research and development, clinical, manufacturing and commercial capabilities. The Company is focused on developing medicines that result in improvements in patients' lives. The Company's commercialized products include vasopressin, PEMFEXY, RYANODEX, BENDEKA, BELRAPZO, TREAKISYM (Japan), and BYFAVO and BARHEMSYS through its wholly owned subsidiary Acacia Pharma Inc. Its oncology and central nervous system (CNS)/metabolic critical care pipeline includes product candidates with the potential to address underserved therapeutic areas across multiple disease states. The Company also has a research and development facility in Cambridge, Massachusetts. The Company has office space in Palm Beach Gardens, Florida and Indianapolis, Indiana. The Companyâs subsidiaries include Eagle Biologics, Inc., Eagle Research Lab Limited, Acacia Pharma Group plc, Acacia Pharma Limited and Acacia Pharma Inc.