aibioEmergent BioSolutions closes $150 million term loan with OrbiMed, cuts ABL revolver to $50 million
Tickers EBS
Emergent drew a $150 million term loan with OrbiMed as administrative agent and repaid its prior credit agreement. Interest is Term SOFR plus 6.25%, with a 3.00% floor, and the loan matures as late as April 16, 2031. The asset-based revolver falls from $100 million to $50 million.
Key facts
- Company
- Emergent BioSolutions Inc. (NYSE: EBS)
- News type
- Debt Financing
- Primary source
- Emergent BioSolutions Inc. Form 8-K filed April 17, 2026 (SEC EDGAR)
Emergent BioSolutions Inc. (NYSE: EBS) said in a Form 8-K that on April 16, 2026 it entered into a secured term loan credit agreement and drew $150 million on the same day. It used the proceeds, together with cash on hand, to repay all amounts under its prior credit agreement dated August 30, 2024, and to terminate that agreement. The same day, it cut its asset-based revolving commitment from $100 million to $50 million.
Jefferies Finance LLC served as sole lead arranger of the term loan. OrbiMed Royalty & Credit Opportunities V, LP is administrative agent for the term loan. Wells Fargo Bank, National Association is administrative agent for the revolver. The prior credit agreement had OHA Agency LLC as administrative agent. The 8-K names these agents but not the individual lenders. It names no law firm or other financial advisor.
The term loan
The term loan has two parts. The initial term loan of $150 million was drawn in full on the closing date. A delayed draw term loan of $75 million is available for 24 months after closing, subject to conditions that include a consolidated secured leverage ratio not exceeding 1.75 to 1.00.
The agreement also allows an uncommitted incremental facility of the greater of $200 million and 80% of consolidated EBITDA.
Interest, fees and maturity
The loan bears interest at Term SOFR, with a floor of 3.00%, plus 6.25% a year. An additional 5.00% a year applies to obligations not paid when due. Emergent pays a fee of 1.00% a year on the undrawn delayed draw amount, quarterly, during the availability period.
The loan matures on the earliest of three dates. The first is April 16, 2031. The second is the date the lenders accelerate after an event of default. The third is 91 days before the maturity of the company's 3.875% Senior Unsecured Notes due 2028. That third trigger applies only if more than $75 million of those notes is still outstanding and Emergent lacks liquidity of $75 million plus the amount needed to repay the notes in full.
Security and covenants
The company and its guarantor subsidiaries, the Credit Parties, guarantee the debt. The term loan is secured by a first-priority lien on its collateral. The agreement contains customary default and cross-default provisions and a covenant that the consolidated total leverage ratio may not exceed 5.25 to 1.00, tested every fiscal quarter from the quarter ending September 30, 2026.
Prepayment terms
Prepayments of the term loan carry a premium. Through the second anniversary of closing, the premium is a make-whole amount plus 3.00% of the principal prepaid. After that, it steps down to 3.00% through the third anniversary and 2.00% through the fourth.
The company must also prepay from net proceeds of certain new indebtedness, certain asset dispositions and certain casualty events. A disposition triggers a prepayment only when net proceeds exceed $15 million in aggregate per fiscal year or $10 million per transaction. Emergent must also pay 50% of excess cash flow each year, with the percentage stepping down based on its consolidated total net leverage ratio.
The revolver cut and the prior facility
The ABL amendment, Amendment No. 1 to the credit agreement dated September 30, 2024, reduces the revolving loan commitment from $100 million to $50 million. It extends the latest maturity of the commitment from September 30, 2029 to April 16, 2031, subject to a springing maturity tied to certain other indebtedness. It also amends certain covenants.
The company's recent results
The company's 10-K, filed February 27, 2026, reports a net loss of $190.6 million for 2024 and year-end 2024 cash and cash equivalents of $99.5 million. It reports net income of $52.6 million for 2025.
Emergent is a Delaware corporation with its principal executive offices in Gaithersburg, Maryland.
What comes next
The $75 million delayed draw term loan is available for 24 months after closing. The 2028 notes remain outstanding, and their maturity could shorten the term loan if the liquidity test fails.