aibioEmergent BioSolutions draws $150 million OrbiMed term loan, repays prior credit agreement
Tickers EBS
The Credit Agreement also provides a $75 million delayed draw term loan, available for 24 months. Interest is Term SOFR plus 6.25% per annum, with a 3.00% floor.
Key facts
- Company
- Emergent BioSolutions Inc. (NYSE: EBS)
- News type
- Debt Financing
- Primary source
- Emergent BioSolutions Inc. 8-K (2026-04-17)
The lenders and the terms
Emergent BioSolutions Inc. (NYSE: EBS) entered into a Credit Agreement on April 16, 2026 with the lenders from time to time party to it. OrbiMed Royalty & Credit Opportunities V, LP is the administrative agent, and Jefferies Finance LLC was sole lead arranger. The filing names no placement agent or financial advisor for the loan. The agreement provides a $150 million initial term loan, which was drawn in full that day, and a $75 million delayed draw term loan available for 24 months. Drawing the delayed amount requires conditions, including a consolidated secured leverage ratio not above 1.75:1.00. An uncommitted incremental facility is also described, sized at the greater of $200 million and 80% of consolidated EBITDA over the prior four quarters, plus further amounts tied to leverage tests. The loans accrue interest at Term SOFR, with a floor of 3.00%, plus 6.25% per annum. A default rate of an additional 5.00% applies to unpaid obligations. The loans mature on April 16, 2031, unless they are accelerated or a springing test is met. That test applies 91 days before the maturity of the company's 3.875% Senior Unsecured Notes due 2028, if more than $75 million of those notes is outstanding and the company lacks the liquidity to repay them.
Covenants, security and prepayment
The company must keep its consolidated total leverage ratio at or below 5.25:1.00, tested every fiscal quarter starting with the quarter ending September 30, 2026. The loan is guaranteed by certain subsidiaries and secured by a first-priority lien on the term loan priority collateral and a second-priority lien on the ABL priority collateral. Mandatory prepayments apply to 100% of net cash proceeds from certain new debt, to asset sale proceeds above $15 million a year or $10 million per transaction, and to 50% of annual excess cash flow, stepping down with leverage. Prepayment through the second anniversary of closing carries a make-whole premium plus 3.00%. The premium is 3.00% through the third anniversary and 2.00% through the fourth.
Refinancing the old facility
The company used the initial loan, with cash on hand, to repay all amounts under its Credit Agreement dated August 30, 2024 with OHA Agency LLC as administrative agent, and terminated those commitments. The delayed draw money may be used for permitted acquisitions, other investments and growth capital expenditures. The company also amended its asset-based revolving credit facility with Wells Fargo Bank, National Association, as administrative agent. The amendment cuts the revolving commitment from $100 million to $50 million and extends its latest maturity from September 30, 2029 to April 16, 2031, subject to a springing maturity tied to certain other debt.
The business behind the debt
The annual report describes Emergent as a global life sciences company focused on public health threats, with a portfolio of 11 products as of December 31, 2025. Its commercial products include NARCAN Nasal Spray and KLOXXADO. Its Services business has shrunk after several restructuring plans and sales of a Baltimore drug substance facility to Syngene International and a Baltimore drug product facility to Bora Pharmaceuticals Injectables Inc. The reported figures show a sharp swing. Revenue was $742.9 million for 2025, against $1.04 billion for 2024. The company reported net income of $52.6 million for 2025, after a net loss of $190.6 million in 2024. Research and development expense was $53.2 million, against $70.7 million. Cash provided by operations was $170.6 million for 2025, against $58.7 million. Year-end cash and cash equivalents were $205.4 million for 2025 and $99.5 million for 2024. The new loan adds $150 million of secured debt with a make-whole premium on early repayment.
What the filing leaves open
The 8-K notes that the full text of the loan and the amendment are filed as exhibits, and that some portions of the loan agreement were omitted as not material. The filing names no specific acquisition that the delayed draw would fund.