Osmotica amends agreement for up to $100 million five-year floaters in three parts

By Wendy Van Sickle

Columbus, Ohio, Aug. 4 – Osmotica Pharmaceuticals plc entered on Thursday into an amendment to its note purchase agreement with Athyrium Opportunities IV Acquisition LP, as administrative agent under which Osmotica agreed in October 2021 to sell up to $100 million of floating-rate notes in three tranches, according to an 8-K filed with the Securities and Exchange Commission.

The amendment waives the condition requiring the second tranche to be funded within a year.

The amendment further provides that the make-whole premium with respect to the second tranche, if issued, will be applicable from the date on which the notes are issued until the second anniversary and the make-whole premium on the third tranche notes, if issued, will be applicable from the date on which the third tranche notes are issued until the second anniversary thereof.

Also, the amendment replaces Libor with SOFR as the interest rate basis. After Sept. 30, any outstanding notes will bear interest at adjusted three-month term SOFR plus 900 basis points. There will be a SOFR floor of 1.5% and a ceiling of 3%.

The biopharmaceutical company is based in Bridgewater Township, N.J.

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