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Amryt Pharma secures $125 million refinancing debt facilities via Ares
By Marisa Wong
Los Angeles, Feb. 22 – Amryt Pharma plc said it secured $125 million of senior credit facilities from funds managed by the Credit Group of Ares Management Corp.
The new facilities consist of an $85 million term loan with an interest rate of SOFR plus 675 basis points, subject to a 0.9% SOFR floor, and a $40 million revolver with $20 million drawn at close and an interest rate of SOFR plus 400 bps, subject to a 0.9% SOFR floor.
The facilities’ quarterly blended cash interest rate of SOFR plus 587 bps (assuming they are fully drawn), subject to a 0.9% SOFR floor, is substantially lower than the 13% interest under Amryt’s current secured term debt facility.
The facilities require interest-only payments until their maturity in February 2027.
There are no warrants or any equity conversion features associated with the new facilities.
Amryt will use a portion of the proceeds to refinance its previous secured term debt facility, which has an outstanding balance of $94 million, an interest rate of 13% and a maturity date of September 2024. Funds will also be used to refinance existing debt, for general corporate and product development purposes and potentially for shareholder approved share repurchase programs.
The new facilities will generate significant annual interest cost savings as well as provide for important strategic flexibility as it looks to continue to grow its global rare disease presence, the company said.
Amryt is a Dublin-based global, commercial-stage biopharmaceutical company dedicated to acquiring, developing and commercializing novel treatments for rare diseases.
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