--- title: "ADMA Biologics enters $300 million credit agreement led by J.P. Morgan" url: "https://aibio.space/news/adma-biologics-enters-300-million-credit-agreement-led-j-p-morgan/" publisher: "aibio.space (Biotech Investor Relations News)" date: "2025-08-06" section: "Debt Financing" tickers: "NASDAQ:ADMA" source: "https://www.sec.gov/Archives/edgar/data/1368514/000114036125029143/ef20053140_8k.htm" summary: "The agreement provides a $75 million term loan and a $225 million revolving credit facility, both maturing August 5, 2028. ADMA used the proceeds to pay of" --- By the aibio.space news desk. Sources - [ADMA BIOLOGICS, INC. Form 8-K filed August 6, 2025 (SEC EDGAR)](https://www.sec.gov/Archives/edgar/data/1368514/000114036125029143/ef20053140_8k.htm) - [ADMA BIOLOGICS, INC. exhibit ef20053140_ex99-1.htm to the August 6, 2025 Form 8-K (SEC EDGAR)](https://www.sec.gov/Archives/edgar/data/1368514/000114036125029143/ef20053140_ex99-1.htm) - [ADMA BIOLOGICS, INC. exhibit ef20053140_ex10-1.htm to the August 6, 2025 Form 8-K (SEC EDGAR)](https://www.sec.gov/Archives/edgar/data/1368514/000114036125029143/ef20053140_ex10-1.htm) - [ADMA BIOLOGICS, INC. Form 10-K filed March 18, 2025: business overview and signatures (SEC EDGAR)](https://www.sec.gov/Archives/edgar/data/1368514/000114036125009257/ef20038923_10k.htm) [ADMA](https://aibio.space/companies/adma-biologics/) 2025-08-06 # ADMA Biologics enters $300 million credit agreement led by J.P. Morgan, repays Ares facility Tickers [ADMA](https://aibio.space/companies/adma-biologics/) The agreement provides a $75 million term loan and a $225 million revolving credit facility, both maturing August 5, 2028. ADMA used the proceeds to pay off its earlier facility with Ares Capital Corporation. ## Key facts - **Company**: ADMA Biologics Inc (NASDAQ: ADMA) - **News type**: Debt Financing - **Primary source**: [ADMA BIOLOGICS, INC. Form 8-K filed August 6, 2025 (SEC EDGAR)](https://www.sec.gov/Archives/edgar/data/1368514/000114036125029143/ef20053140_8k.htm) *Two people shaking hands across a table. Photo: Kristin Hardwick, CC0, via StockSnap. The picture shows the field, not the companies named.* ADMA Biologics, Inc. (Nasdaq: [ADMA](https://aibio.space/companies/adma-biologics/)) entered into a credit agreement on August 5, 2025 that provides $300 million of senior secured credit facilities, according to a [Form 8-K filed August 6, 2025](https://www.sec.gov/Archives/edgar/data/1368514/000114036125029143/ef20053140_8k.htm). The company and all of its subsidiaries signed the agreement with the lenders, and JPMorgan Chase Bank, N.A. is the administrative agent. On the closing date ADMA used the proceeds to terminate and repay in full its previous senior secured credit facility with Ares Capital Corporation. The company is based in Ramsey, New Jersey. ## The lenders and arrangers The credit agreement names JPMorgan Chase Bank, N.A. as administrative agent and sole bookrunner, Truist Bank as documentation agent, and MUFG Bank, Ltd. and U.S. Bank National Association as joint lead arrangers. The lenders are the parties listed as lenders in the agreement. The 8-K and the agreement name no separate counsel for the company or the lenders. ## The facilities The agreement has two parts. The term loan is $75 million, and the revolving credit facility is $225 million. Both mature on August 5, 2028, although the revolver can end earlier if its commitments are reduced to zero or terminated. The company may also request additional revolving commitments or term loans of up to $100 million, subject to customary conditions. Pricing depends on the company's total leverage ratio. Borrowings at the alternate base rate carry spreads of 150 basis points to 200 basis points. Borrowings at Term SOFR carry spreads of 250 basis points to 300 basis points. The commitment fee on the undrawn revolver is 30 basis points to 35 basis points. After an Event of Default, all borrowings accrue interest at 2% above the applicable rate. The term loan amortizes on a schedule set in the agreement, with the rest due at maturity. ADMA may prepay at any time without premium or penalty, apart from any break funding expenses. All obligations are secured by a first-priority lien on substantially all tangible and intangible assets of the company and its subsidiaries, including intellectual property and equity interests. ## Covenants The agreement sets a maximum total leverage ratio of 2.50 to 1.00 and a minimum fixed charge coverage ratio of 1.20 to 1.00. The negative covenants also restrict or limit the company's ability to take on other debt, grant liens, make certain investments, sell assets, enter sale and leaseback transactions, deal with affiliates and make certain restricted payments, subject to exceptions. ## Use of the money The 8-K says the company may use the proceeds to finance share repurchases, as well as for working capital and general corporate purposes. That permission matters because the company's second-quarter release reports buybacks alongside the new debt. The release says ADMA repurchased approximately $15 million of common stock during the second quarter under a $500 million program. The 8-K does not say how much of the term loan or the revolver was borrowed at closing, or how much the Ares facility carried. The release describes the new agreement as replacing the prior term loan and reducing borrowing costs, but it does not give the amount repaid. ## Cash and inventory The release says ADMA ended the second quarter with $90.3 million in cash and $109.7 million in accounts receivable. It also says the company carried a $19.3 million inventory step-up to support anticipated ASCENIV demand. The release presents the period as one of strong free cash flow despite that build. Those figures come from the company's own release. The 8-K gives the loan terms but not the post-closing debt balance, so an investor cannot see from the filing alone how much debt sits against the $90.3 million of cash. ## What the terms mean A secured facility with a 2.50 to 1.00 leverage ceiling gives lenders a first claim on substantially all of ADMA's assets, including its intellectual property. The revolver and the $100 million incremental option add room the company can use, and the buyback permission means borrowed money could be used for share repurchases under the terms of the agreement. 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Cite as: aibio.space, "ADMA Biologics enters $300 million credit agreement led by J.P. Morgan", 2025-08-06, https://aibio.space/news/adma-biologics-enters-300-million-credit-agreement-led-j-p-morgan/