Adams Respiratory gets five-year $50 million credit facility

By Lisa Kerner

Charlotte, N.C., July 17 - Adams Respiratory Therapeutics, Inc. said it received a commitment for a new five-year $50 million senior secured revolving credit facility from RBC Capital Markets.

Royal Bank of Canada will serve as administrative agent.

The commitment gives Adams immediate availability of up to $25 million prior to closing.

The credit facility, which could increase to $150 million if needed, is available to finance working capital, capital expenditures, acquisitions and other general corporate purposes.

"We are pleased to establish this relationship with RBC Capital Markets," said David P. Becker, executive vice president, CFO and treasurer, in a news release.

"The availability of this credit facility provides us with greater financial flexibility and an immediate source of capital as we continue to build our business and seek opportunities to strengthen our position within the respiratory space."

On July 11, Adams entered into a $25.0 million, secured short-term credit facility with Royal Bank of Canada for short-term liquidity needed prior to the closing of the longer term, permanent debt facility.

That agreement allowed for three separate advances bearing interest at LIBOR plus 75 basis points. All advances under this credit facility are due when Adams enters into its permanent debt facility of $25.0 million or more.

Adams said it did not draw any advances on the short-term credit facility.

Adams is a Chester, N.J.-based specialty pharmaceutical company focused on over-the-counter and prescription pharmaceuticals for the treatment of respiratory disorders.

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