Emergent BioSolutions Inc. announced that it has completed a new five-year, $200 million syndicated senior secured credit facility. This new facility replaces and represents an increase from the company's prior $100 million facility, which was scheduled to expire in December 2018. The new facility enhances the company's financial flexibility, providing increased capacity to drive growth through strategic acquisitions along with working capital as needed.

The credit facility also includes a $100 million accordion feature, which could expand total commitments to up to $300 million with an additional $100 million in revolver or incremental term loans, at the Company's option, subject to certain conditions and requirements under the credit agreement. The company did not make any borrowings under the facility nor does it intend to borrow under the facility in connection with the planned closings of the previously announced acquisitions of raxibacumab from GSK and the ACAM2000® (Smallpox (Vaccinia) Vaccine, Live) business from Sanofi.

"This credit facility expansion enables Emergent to take advantage of more favorable financial market conditions and provides us the flexibility to continue to pursue additional acquisitions aligned with our growth strategy, with the goal of enhancing long-term shareholder value," stated Robert G. Kramer, Sr., executive vice president and chief financial officer at Emergent BioSolutions. "We appreciate the strong support and confidence of our expanded lender group."

Wells Fargo Securities, LLC acted as the lead arranger for the syndicated credit facility. JPMorgan Chase Bank, N.A., PNC Capital Markets LLC and RBC Capital Markets acted as joint lead arrangers and joint book runners.