--- title: "Neogen refinances term loan and revolver with $450 million term loan" url: "https://aibio.space/news/neogen-refinances-term-loan-revolver-450-million-term-loan-250-million/" publisher: "aibio.space (Biotech Investor Relations News)" date: "2025-04-07" section: "Debt Financing" tickers: "NASDAQ:NEOG" source: "https://www.sec.gov/Archives/edgar/data/711377/000095017025051441/neog-20250404.htm" summary: "Neogen refinanced its term loan and revolving credit facility on April 4, 2025, with a new $450.0 million term loan and a $250.0 million revolver that matu" --- By the aibio.space news desk. Sources - [NEOGEN CORP Form 8-K filed April 7, 2025 (SEC EDGAR)](https://www.sec.gov/Archives/edgar/data/711377/000095017025051441/neog-20250404.htm) - [NEOGEN CORP exhibit neog-ex99_1.htm to the April 7, 2025 Form 8-K (SEC EDGAR)](https://www.sec.gov/Archives/edgar/data/711377/000095017025051441/neog-ex99_1.htm) - [NEOGEN CORP exhibit neog-ex10_1.htm to the April 7, 2025 Form 8-K (SEC EDGAR)](https://www.sec.gov/Archives/edgar/data/711377/000095017025051441/neog-ex10_1.htm) [NEOG](https://aibio.space/companies/neogen/) 2025-04-07 # Neogen refinances term loan and revolver with $450 million term loan, $250 million credit facility Tickers [NEOG](https://aibio.space/companies/neogen/) Neogen refinanced its term loan and revolving credit facility on April 4, 2025, with a new $450.0 million term loan and a $250.0 million revolver that matures April 4, 2030. The revolver had $100.0 million drawn at closing, and the company says the deal is leverage-neutral and cuts its rate, a claim the 8-K and the release do not test against the old terms. ## Key facts - **Company**: NEOGEN CORP (NASDAQ: NEOG) - **News type**: Debt Financing - **Primary source**: [NEOGEN CORP Form 8-K filed April 7, 2025 (SEC EDGAR)](https://www.sec.gov/Archives/edgar/data/711377/000095017025051441/neog-20250404.htm) *An empty boardroom with a long table. CC0, via rawpixel. The picture shows the field, not the companies named.* Neogen Corporation (Nasdaq: [NEOG](https://aibio.space/companies/neogen/)) refinanced its term loan and revolving credit facility on April 4, 2025, replacing debt that was due in August 2027 with new borrowings that mature on April 4, 2030. The company reported the deal in a [Form 8-K filed April 7, 2025](https://www.sec.gov/Archives/edgar/data/711377/000095017025051441/neog-20250404.htm). ## What the amendment does Neogen Corporation, Neogen Food Safety Corporation and certain subsidiaries signed Amendment No. 1 and Refinancing Amendment to a credit agreement dated June 30, 2022. The amendment creates a new tranche of senior secured term loans totaling $450.0 million and a revolving credit facility of $250.0 million, against which $100.0 million has been drawn. The company used the proceeds of the loans borrowed on April 4, 2025 to refinance in full all outstanding term loans under the existing agreement. The term loans mature on April 4, 2030. The revolver ends on the earlier of April 4, 2030 or the date its commitments are terminated. ## The rate and repayment terms The loans can bear interest at a choice of three bases. The first is Adjusted Term SOFR plus a spread of 1.375% to 1.75% a year. The second is Adjusted Daily Simple SOFR plus the same range. The third is the Alternate Base Rate plus a spread of 0.375% to 0.75%. The spread depends on the company's Total Leverage Ratio, as defined in the amended agreement. The term loans amortize at 5.00% a year, paid in equal quarterly installments starting December 31, 2025. The amendment took effect once conditions were met, including an officer's certificate that no default existed, a solvency certificate and legal opinions. ## What the company says The release dated April 7, 2025 says Neogen refinanced the remaining $550 million of its original $650 million term loan, along with the revolver due in August 2027. It says the new loans extend the previous maturity by over two and a half years, and that the revolver grew from $150 million to $250 million. The company calls the transaction leverage-neutral. The release says the new term loan and revolver carry interest at the Secured Overnight Financing Rate plus a current margin of 175 basis points, which it describes as a saving of 60 basis points. Neither document gives the old margin, so the saving cannot be checked against the earlier terms. Chief Financial Officer and Chief Operating Officer David Naemura said in the release that the refinancing maintains the company's liquidity, extends the maturities and results in a lower interest rate. He added that the new facilities give the company more balance sheet flexibility. ## Banks, agent and counsel JPMorgan Chase Bank, N.A. is the administrative agent under the amended agreement, and the release names it as a joint lead arranger. The release also names BofA Securities, Inc., Citizens Bank, N.A., Goldman Sachs Bank USA and Wells Fargo Securities, LLC as additional joint lead arrangers. The amendment lists those five as Joint Lead Arrangers and Joint Bookrunners, and the last four as Co-Syndication Agents. The 8-K and the release name no placement agent or underwriter for the loans. Weil, Gotshal & Manges LLP is counsel to the loan parties, and Gordon Rees Scully Mansukhani is special Nebraska and Michigan counsel to the loan parties, according to the legal opinion condition in the amendment. The documents name no counsel to the lenders. ## The company and what is missing In the release, Neogen describes itself as a food safety company with solutions spanning the Food Safety, Livestock, and Pet Health & Wellness markets, and says it has a presence in over 140 countries. Neogen Food Safety Corporation, the other borrower, was formerly Garden Spinco Corporation. Amy M. Rocklin, chief legal and compliance officer and corporate secretary, signed the 8-K for Neogen. The 8-K and the release do not give Neogen's cash balance, its leverage ratio at closing or its net income, so the headroom under the amended agreement and the size of the leverage-neutral claim cannot be measured. They do not say what the $100.0 million draw was for, or where the company sits within the spread ranges tied to the Total Leverage Ratio. [Report an error](https://aibio.space/reputation/#correction) ## Companies in this story NEOG NEOGEN CORP NASDAQ ยท United States Open the starter desk ## More in Debt Financing Debt Financing ### [Pelthos amends Horizon venture loan, funds Loans E to H and adds Loans I and J](https://aibio.space/news/pelthos-amends-horizon-venture-loan-funds-loans-e-h-adds-loans/) Oct 30, 2026 Debt Financing ### [Repligen announces $1.0 billion private convertible notes transaction](https://aibio.space/news/repligen-announces-1-0-billion-private-convertible-notes-transaction/) Oct 30, 2026 Debt Financing ### [FOXO to buy Ludwig Enterprises preferred stock with majority voting power](https://aibio.space/news/foxo-buy-ludwig-enterprises-preferred-stock-majority-voting-power/) Oct 29, 2026 --- Source page: https://aibio.space/news/neogen-refinances-term-loan-revolver-450-million-term-loan-250-million/. Facts in aibio.space stories are checked against company filings and releases; opinion is labelled. Cite as: aibio.space, "Neogen refinances term loan and revolver with $450 million term loan", 2025-04-07, https://aibio.space/news/neogen-refinances-term-loan-revolver-450-million-term-loan-250-million/