ADMA Biologics Announces $135M Non-Dilutive Refinancing Of Credit Facilities With Ares Management

Author: Benzinga Newsdesk | December 18, 2023 05:07pm

New $135 Million Credit Facility Replaces Existing $159 Million Credit Facility, a 15% Decrease in Total Debt

 

Further Supports Rapid Q-o-Q and Y-o-Y Earnings Accretion

RAMSEY, N.J. and BOCA RATON, Fla., Dec. 18, 2023 (GLOBE NEWSWIRE) -- ADMA Biologics, Inc. (NASDAQ:ADMA) ("ADMA" or the "Company"), an end-to-end commercial biopharmaceutical company dedicated to manufacturing, marketing, and developing specialty plasma-derived biologics, today announced the Company has executed a definitive credit agreement with Ares Management credit funds ("Ares") for $135 million in total senior secured credit facilities, including a $72.5 million asset-backed revolving credit facility and a $62.5 million term loan. The proceeds of the senior secured credit facilities were fully drawn at closing and used, along with existing cash, to repay all obligations under the prior Hayfin Capital Management senior secured credit facility.

"This non-dilutive credit facility with Ares materially reduces ADMA's nominal interest rate and significantly lowers our total debt by 15%, which further supports ADMA's rapid earnings growth outlook," said Adam Grossman, President and Chief Executive Officer of ADMA. "We have assertively chosen to use a portion of our available cash in a non-dilutive manner, to decrease our overall debt while concurrently improving our borrowing rate. This decision is a testament to our confidence in the sustained growth of earnings and the anticipated ongoing generation of cash. We look forward to finishing 2023 on a high note and embarking on 2024 from a position of strength."

Chris York, Partner, Ares US Direct Lending, said: "Our investment in ADMA, with its strong commercial position in treating patients with rare immunodeficiencies, is consistent with our strategy to back innovative life sciences businesses. We look forward to supporting ADMA in this new phase of growth and development."

Key features of this new credit facility include:

• $135 million senior secured credit facilities, comprised of a $72.5 million asset-backed revolver and a $62.5 million term loan
• 4-year interest only maturity period
• The full amount of the loan was fully drawn at the initial funding
• The proceeds were used to refinance ADMA's senior credit facility with Hayfin Capital Management

The debt financing terms disclosed in this press release are not all inclusive and, as such, the statements in this press release are qualified in their entirety by reference to the description of the debt financing further detailed in a Securities and Exchange Commission ("SEC") filing on Form 8-K which will be filed concurrently with this press release.

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