Recro Pharma, Inc. Enters into First Amendment to Credit Agreement
January 05, 2019 at 02:54 am IST
Share
On December 28, 2018, Recro Pharma, Inc. entered into a First Amendment to Credit Agreement and Investment Documents by and among the Company, certain of the Company’s subsidiaries named as guarantors therein the lenders named therein, and Athyrium Opportunities III Acquisition LP, in its capacity as the administrative agent. Pursuant to the First Amendment, the $20 million term B loan and $20 million term C loan provided for under the Company’s Credit Agreement dated November 17, 2017 by and among the Company, the Guarantors, the Lenders and Athyrium, which were contingent on the Company receiving regulatory approval of its intravenous meloxicam product candidate (“IV meloxicam”) by December 31, 2018, were restructured into a $10 million term B-1 loan funded on December 28, 2018; a $15 million term B-2 loan (the “Term B-2 Loan”); and a $15 million term C loan (the “Term C Loan”). The Term B-2 Loan may be drawn upon by the Company on or before September 30, 2019 provided that the Company receives regulatory approval of IV meloxicam and has at least $20 million in unrestricted cash if the $5 million milestone payment due to Alkermes Pharma Ireland Limited (“Alkermes”) on or before April 23, 2019 (the “Alkermes Milestone Payment”) pursuant to the Company’s recently amended Purchase and Sale Agreement regarding the Company’s acquisition of the rights to IV meloxicam from Alkermes (the “Purchase Agreement”) has already been paid (if the Alkermes Milestone Payment has not been paid, the Company must have at least $25 million in unrestricted cash).
Societal CDMO, Inc. is a bi-coastal contract development and manufacturing organization (CDMO). The Company is engaged in spanning pre-investigational new drug development to commercial manufacturing and packaging for a range of therapeutic dosage forms with a primary focus in the area of small molecules. It is a CDMO providing therapeutic development, end-to-end regulatory support, clinical and commercial manufacturing, aseptic fill/finish, lyophilization, packaging and logistics services to the global pharmaceutical market. The Company's key products include Ritalin LA, Focalin XR, Verelan PM, Verelan SR, Verapamil PM, Verapamil SR and Donnatal liquids and tablets. Its manufacturing and development capabilities include product development from formulation through clinical trial and commercial manufacturing, and specialized capabilities for solid oral dosage forms, with specialization in modified release technologies and facilities to handle potent compounds and controlled substances.