Radius Health announced that the Company has entered into amended and restated credit facilities in the aggregate principal amount of $175 million, consisting of a $150 million term loan, which includes a cashless conversion of $25 million in existing term loans, and a $25 million revolving credit facility. The amended and restated credit facilities also provide for an additional $25 million term loan at the lenders’ discretion. The transaction represents a significant upsize from the Company’s prior senior $95 million loan facilities, which consisted of a $55 million term loan ($25 million of which had been drawn) and a $20 million revolving credit facility that also included an additional $20 million of potential incremental availability. The amended and restated loan is expected to close on or about March 11.
The Company and certain of its subsidiaries (the “Borrowers”) amended and restated its existing senior secured facilities (“Facilities”) with MidCap Financial and MidCap Funding IV Trust, as agents under the term loan credit agreement and revolving loan credit agreement, respectively, and the lenders thereunder.
The term loan credit agreement provides for, among other things:
- An initial term loan of $150 million, including the cashless conversion of $25 million in existing term loans (the “Initial Term Loan”)
- An additional $25 million term loan, which the lenders may make available in their discretion within one year of the closing of the Initial Term Loan
- Interest at a rate of LIBOR plus 5.75%, subject to a 2.00% LIBOR floor
The amended and restated revolving loan agreement provides for, among other things:
- Revolving credit facility of up to $25 million, made available based on a borrowing base calculated based on percentages of the net collectable value of certain of the Borrowers’ domestic accounts receivable, and domestic eligible inventory, minus certain reserves
- Interest at a rate of LIBOR plus 3.50%, subject to a 2.00% LIBOR floor
The Facilities have a maturity date of June 1, 2024. They are guaranteed and secured by substantially all of the assets of the Borrowers and any future subsidiaries of the Borrowers that become borrowers or guarantors under the Facilities, subject to certain exceptions. The Borrowers may be required to make mandatory prepayments prior to maturity under certain circumstances.
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