Recro Pharma gets $100 million five-year term loan agreement from Athyrium Opportunities

By Tali Rackner

Minneapolis, Nov. 20 – Recro Pharma, Inc. entered into a $100 million five-year credit agreement on Friday with Athyrium Opportunities III Acquisition LP as administrative agent, according to an 8-K filing with the Securities and Exchange Commission.

The credit agreement provides for a $60 million term loan A, which was funded at closing, a $20 million term loan B and a $20 million term loan C.

The term loan B may be drawn upon on or before Dec. 31, 2018 provided that the company receives regulatory approval of its intravenous meloxicam product candidate (IV Meloxicam) and will have at least $20 million of unrestricted cash after payment of the milestone payment due to Alkermes.

The term loan C may be drawn upon at any time on or before March 31, 2020 provided that the term loan B has been drawn and net sales of IV Meloxicam achieve $20 million for the most recent trailing 12-month period.

The credit agreement matures on Nov. 17, 2022.

Loans will bear interest at Libor plus 975 basis points with a 1% Libor floor, payable quarterly.

Term loan A proceeds were used to fully repay all outstanding debt under Recro’s existing credit facility dated April 10, 2015 and pay transaction fees associated with the credit agreement.

The clinical-stage specialty pharmaceutical company is based in Malvern, Pa.

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