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Halozyme Therapeutics gets $75 million three-year secured revolver
By Marisa Wong
Los Angeles, Dec. 30 – Halozyme Therapeutics, Inc. entered into a credit agreement on Dec. 23 with Bank of America, NA as administrative agent, swingline lender and letter-of-credit issuer for a $75 million secured revolving credit facility, according to an 8-K filing with the Securities and Exchange Commission.
Domestic subsidiary Halozyme, Inc. guarantees the facility.
The facility matures on Dec. 23, 2024.
Borrowings bear interest at the BSBY rate plus an applicable margin based on consolidated total net leverage ratio that ranges from 100 basis points to 175 bps.
In addition to paying interest, the company will pay a commitment fee for unused commitments ranging from 15 bps to 30 bps, based on the company’s consolidated net leverage ratio.
The credit agreement contains an expansion feature that allows the company to increase the aggregate principal amount of the facility to $250 million, provided the company remains in compliance with financial covenants on a pro forma basis including the consolidated interest coverage ratio and the consolidated net leverage ratio covenants.
The credit agreement includes financial covenants requiring the company to maintain, measured as of the end of each fiscal quarter, a maximum consolidated net leverage ratio of 4.50 to 1.00 and a minimum consolidated interest coverage ratio of 3.00 to 1.00.
Borrowings are to be used to provide financing for working capital and other general corporate purposes, including potential acquisitions.
No proceeds from the facility were drawn down as of the closing date.
Halozyme is a San Diego-based biotechnology company.
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