Benzinga | Dec 9, 2020 08:05AM EST

ADMA Biologics Reports $100M Credit Facility Loan Amendment With Perceptive Advisors: 'Increases Size of Facility and Extends Interest-Only Period...'

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 an amendment to its existing senior secured term loan with Perceptive Advisors ("Perceptive"), which provides for an additional loan tranche of $15 million, increasing the total size of the credit facility to $100 million. The amended terms for the existing $85 million credit facility additionally provide for, among other things, a two-year extension of the interest only period through the duration of the credit facility now maturing in March 2024, at an unchanged borrowing rate of 11%. The newly issued loan tranche of $15 million from Perceptive was fully drawn and used to pay the remaining obligations under the Biotest AG subordinated note entered into in June of 2017, at a 7% mutually agreed discount with no associated prepayment penalties. This additional loan tranche carries the same terms as the amended senior secured loans. There were no modifications made to the existing revenue covenants of the credit facility with Perceptive.

"This upsized loan amendment demonstrates Perceptive's long-term view for the plasma industry and ADMA's important role as a reliable producer of plasma-derived biologics," said Joseph Edelman, Chief Executive Officer and Founder of Perceptive Advisors. "We remain committed to supporting ADMA's business and unlocking shareholder value that we believe has yet to be realized. We are optimistic that the asset value of manufactured plasma and plasma collection centers will continue to appreciate into the future."

"This amendment to our senior secured term loan, with its increased size and extended maturities, strengthens our long-term capital position and allows us to continue to execute on our strategic priorities, including supply chain enhancement initiatives and plasma center expansion, in addition to generating considerable near-term and ongoing revenue growth," stated Adam Grossman, President and Chief Executive Officer of ADMA. "Despite ongoing COVID-19 headwinds, we remain on track to achieve our previously provided guidance for topline revenues of $250 million or greater by 2024, and we are confident that we are well-positioned to achieve profitability prior to the new 2024 maturity date of the loan. The continued support from Perceptive, who remains our largest equity holder, is a testament to the shareholder value that we believe will be created as we execute on these corporate objectives and establish ADMA as the only fully integrated American plasma fractionator."

"Perceptive is pleased to provide additional capital to support ADMA's near-term revenue and profitability growth strategy," stated Sam Chawla, Portfolio Manager at Perceptive. "The Company has made significant progress and has met all of our goals and objectives to date. We look forward to seeing ADMA's continued progress and supporting the Company's mission and value creating business objectives, focused on improving healthcare options for patients at risk of infectious diseases."

The Perceptive credit amendment has an interest-only term with a maturity date of March 1, 2024. Borrowings under the Perceptive credit agreement bear interest at a rate per annum equal to 7.5% plus the greater of one-month LIBOR and 3.5%. ADMA will also issue a warrant to Perceptive to purchase 2,390,000 shares of the Company's common stock at the lower of ADMA's closing share price on the date of the amendment and the 10-day VWAP ahead of closing.

The debt financing disclosed in this press release is 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 transaction and corresponding exhibits, which are included in a Current Report on Form 8-K filed concurrently with this press release by ADMA with the Securities and Exchange Commission.