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JPMorgan Chase Agents $50MM Revolver for Eagle Pharmaceuticals

February 01, 2017, 07:18 AM
Filed Under: Pharmaceuticals

Eagle Pharmaceuticals, Inc., announced it has 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 facility includes a $5 million letter of credit subfacility.  The company expects to use future loans under the Credit Facility, if any, for working capital needs and for general corporate purposes.

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).
Eagle Pharmaceuticals 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.

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