ADMA Biologics, Inc., a vertically integrated commercial biopharmaceutical company that develops, manufactures and markets specialty plasma-based biologics for the prevention and treatment of certain infectious and immunological diseases, announced it has entered into a credit agreement for up to $40 million with affiliated entities of Marathon Asset Management. ADMA will use the proceeds from this transaction to refinance the principal and accrued interest of its outstanding secured loan with Oxford Finance LLC, pay transaction expenses and provide for working and growth capital.
Upon the closing of this financing with Marathon, ADMA received $30 million of a senior secured single draw term loan, with an additional $10 million senior secured single draw term loan to be provided by Marathon upon the achievement of either (i) the Food and Drug Administration’s (FDA) approval for the commercialization of Bivigam® and ADMA’s generation of not less than $500 thousand in net revenue from the sale in the United States of Bivigam® in calendar year 2018, or (ii) the FDA’s approval for the commercialization of RI-002 and ADMA’s generation in calendar year 2019 of not less than $500 thousand in net revenue from the sale in the United States of RI-002. The refinancing allows for an interest only payment period of 36 months, permitting ADMA to defer the first monthly payment of principal until October 2020.
“Marathon is very pleased to be a financing partner to ADMA in their senior secured debt refinancing. Throughout the due diligence process, Marathon has learned about ADMA’s business operations, current progress and future opportunities and, as such, is pleased to provide ADMA with debt capital so that the Company can utilize the proceeds to improve the overall quality of operations,” stated Evan Bedil, Managing Director of Marathon.
“We are pleased to announce this transaction with Marathon, a leading investment management firm with a deep understanding and expertise in working with drug manufacturing companies. We are proud to have obtained their confidence in ADMA’s ongoing operations and with our future plans as a result of Marathon’s thorough and extensive due diligence process. This refinancing enhances our current cash balance position and allows the Company to extend its cash runway by obtaining a three year interest-only payment period,” stated Adam Grossman, President and Chief Executive Officer of ADMA.
The description of the debt financing in this press release is not all inclusive and, as such, the statements in this press release are qualified in their entirety by reference to the description of the debt financing transaction and corresponding exhibits which are included in a Current Report on Form 8-K filed concurrently to this press release by ADMA with the Securities and Exchange Commission.