ANI Pharmaceuticals, Inc. announced that it has entered an amended and restated five-year Senior Secured Credit Facility for up to $265.2 million with its existing syndicate of bank lenders. The Facility amends ANI's current $125 million Senior Secured Credit Facility and is structured to provide ANI flexibility in refinancing its 3.00% Convertible Senior Notes due 2019. The principal feature of the Facility is a new $118.0 million Delayed Draw Term Loan available to refinance ANI's Convertible Notes maturing in December 2019. The Delayed Draw Term Loan is fully committed by the Bank Group and can be accessed by ANI at any time and in multiple tranches through December 1, 2019, subject to satisfaction of certain conditions precedent. The second feature is the extension of $72.2 million of Term Loan-A debt currently outstanding under the existing facility. In addition, the Facility increases the existing $50.0 million Senior Secured Revolving Credit Facility to $75.0 million. Both the Delayed Draw Term Loan and Senior Secured Revolving Credit Facility are undrawn as of this time. Interest on the Facility is LIBOR based and generally consistent with ANI's current borrowing arrangements with the Bank Group. The Facility is secured by the assets and equity interests of ANI and guaranteed by certain of its subsidiaries.
The Lead Arranger and Administrative Agent for the Facility is Citizens Bank, N.A. The Bank of Tokyo-Mitsubishi UFJ, Ltd. and The Huntington National Bank acted as Joint Lead Arrangers, while Regions Bank acted as Documentation Agent. The Facility is also funded by U.S. Bank National Association and J.P. Morgan Chase Bank, N.A.
Arthur S. Przybyl, ANI's President and CEO stated, "The expansion of our existing credit facility is a testament to the financial strength of ANI and signals our intent to refinance our Convertible Notes in a shareholder friendly manner." Stephen P. Carey, ANI's Vice President and CFO added, "Today's amendment provides ANI maximum flexibility in approaching the refinancing of our Convertible Notes maturing in December 2019, with the security of fully committed capital from our Bank Group. In addition, the expansion of the revolver portion of the Facility coupled with our cash on-hand, continued cash flow from operations, and on-going support of our Bank Group will continue to support our future growth."
"At Citizens, we try to think about the needs of our clients from their point of view and offer holistic solutions," said Daniel K. Fitzpatrick, Executive President of Mid-Atlantic Region and Head of National Industry Verticals for Citizens Bank. "Leading flexible credit facilities so valued clients such as ANI Pharmaceuticals can grow is just one of the ways that Citizens delivers substantial value for our clients at every stage of their business life cycle."