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Regeneron enters replacement $750 million five-year revolver
By Marisa Wong
Los Angeles, Dec. 20 – Regeneron Pharmaceuticals, Inc. entered into a credit agreement on Dec. 19 for a $750 million senior unsecured five-year revolving credit facility, according to an 8-K filed with the Securities and Exchange Commission.
The revolver includes a $25 million sublimit for swingline borrowings and a $50 million sublimit for letters of credit.
The credit agreement gives the company an option to increase the commitments under the credit facility or to enter into one or more tranches of term loans in the aggregate principal amount of up to $500 million.
The revolver matures on Dec. 19, 2027, but the company has an option to extend the maturity.
Loans bear interest at SOFR plus an applicable margin that varies with the company’s debt rating and total leverage ratio. The applicable margin ranges from 87.5 basis points to 150 bps.
The commitment fee ranges from 8 bps to 20 bps.
The company has the option to amend the credit agreement to establish environmental, social and governance targets which will be used to adjust pricing.
The credit agreement contains a maximum total leverage ratio financial covenant.
Loan proceeds may be used to finance working capital needs and for general corporate purposes.
As of Tuesday, no borrowings were outstanding under the new credit facility.
JPMorgan Chase Bank, NA is administrative agent, swingline lender, and an issuing bank.
JPMorgan, BofA Securities, Inc. and U.S. Bank are joint bookrunners and joint lead arrangers.
Bank of America, NA and U.S. Bank are co-syndication agents.
Citibank, NA, Fifth Third Bank, NA, Goldman Sachs Bank USA and Barclays Bank plc are co-documentation agents.
The revolver replaces the company’s previously existing $750 million revolver dated Dec. 14, 2018, which was terminated upon closing of the new facility.
Regeneron is a Tarrytown, N.Y.-based biopharmaceutical company.
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