PharMerica Corporation, a national provider of institutional specialty home infusion hospital and oncology pharmacy services, announced that it has successfully closed on a new credit agreement. PharMerica will use the facilities for general corporate purposes and to pursue acquisition opportunities.
Under the new credit agreement the Company borrowed a term loan of $225 million and will have access to a committed revolving credit facility of $310 million. The new credit agreement increases the size of PharMerica’s committed revolving line of credit by $110 million as compared to the revolving line of credit under the company’s prior credit agreement while lowering the company’s interest rate by 75 basis points. In addition the company may request commitments for additional term loans or revolving loans under the new credit agreement as long as they do not exceed $190 million in the aggregate an increase of $90 million over the amount of incremental commitments and loans permitted under the company’s existing credit agreement. Furthermore the principle amortization schedule associated with the term loan is 5% annually commencing with the second year of the five-year facility with the remaining 80% due upon the expiration of the facility in September 2019.
“We are pleased to have secured this financing package which will enhance financial flexibility and reduce the cost of capital allowing us to us to take advantage of value-enhancing growth opportunities” said Greg Weishar PharMerica Corporation’s Chief Executive Officer. "We are positioning PharMerica to compete aggressively for market share through organic growth and acquisitions and we are confident we will continue to succeed and drive shareholder value creation.”
Participating lenders for the new credit agreement include Bank of America N.A as administration agent; JPMorgan Chase Bank N.A. as syndication agent; and U.S. Bank National Association Citibank N.A. MUFG Union Bank N.A. BBVA Compass Bank and Suntrust Bank as co-documentation agents.
In connection with the new credit agreement PharMerica’s credit agreement dated May 2, 2011 was repaid in full and terminated.
PharMerica Corporation is a leading institutional pharmacy services company that services healthcare facilities in the United States provides pharmacy management services to hospitals specialty infusion services to patients outside a hospital setting and offers the only national oncology pharmacy and care management platform in the United States. PharMerica operates 97 institutional pharmacies 14 specialty infusion centers and 5 specialty oncology pharmacies in 45 states. PharMerica’s customers are institutional healthcare providers such as skilled nursing facilities nursing centers assisted living facilities hospitals individuals receiving in-home care and other long-term alternative care providers.