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Amneal units obtain $180 million term loan, $30 million revolver
By Sarah Lizee
Olympia, Wash., Feb. 4 – Amneal Pharmaceuticals Inc. subsidiaries Rondo Intermediate Holdings, LLC and Rondo Holdings, LLC entered into a credit agreement on Friday with Truist Bank as the administrative agent, providing for a $30 million senior secured first-lien revolver and a $180 million senior secured first-lien term loan, according to an 8-K filing with the Securities and Exchange Commission.
Rondo Intermediate and Rondo Holdings are subsidiaries of Rondo Acquisition LLC, which was formed through Amneal’s acquisition of a 65.1% majority interest in AvKARE Inc. Proceeds from the new credit agreement were used to help finance the acquisition.
SunTrust Robinson Humphrey, Inc., BofA Securities, Inc., RBC Capital Markets and City National Bank are the joint lead arrangers.
Pricing is Libor plus 225 basis points to 325 bps, and the commitment fee ranges from 25 bps to 50 bps, in each case depending on the total net leverage ratio.
The loans mature on Jan. 31, 2025. The borrower must make quarterly payments on the term loan of $2.25 million to the administrative agent on the principal amount of the term loans beginning with the fiscal quarter ending June 30.
The credit agreement requires maintenance of a total net leverage ratio of less than or equal to 4.5 to 1.0 and maintenance of an interest coverage ratio of greater than or equal to 2 to 1.
The credit agreement allows for incremental increases in commitments. The aggregate revolving commitments may not exceed $20 million.
Amneal is a Bridgewater, N.J.-based pharmaceutical company. AvKARE is a provider of generic pharmaceuticals in the U.S. federal agency sector.
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