Pacira BioSciences enters $300.0 million revolving credit facility, repays term loan A

Pacira BioSciences, Inc. (Nasdaq: PCRX) has replaced its term loan A facility with a new senior secured revolving credit facility of $300.0 million. The company disclosed the refinancing in a Form 8-K filed July 7, 2025. The credit agreement is dated July 3, 2025, and Pacira used a portion of the revolving loans that day to repay the debt under its earlier credit agreement.

The lenders and agents

Wells Fargo Bank, National Association is administrative agent, swingline lender and an issuing bank under the agreement, together with "certain lenders" the 8-K does not list. The exhibit to the 8-K, the credit agreement itself, names Fifth Third Bank, National Association, Royal Bank of Canada and U.S. Bank National Association as documentation agents. It names Wells Fargo Securities, LLC, Citizens Bank, National Association and Truist Securities, Inc. as joint bookrunners and lead arrangers.

The 8-K names no legal counsel for either side, and it names no financial advisor. The filing does not state the fees paid to the arrangers.

Terms of the revolver

The facility is a senior secured revolving credit facility with an aggregate commitment of $300.0 million, a letter of credit sublimit of $10.0 million and a swingline sublimit of $15.0 million. It is secured by substantially all of the company's and each subsidiary guarantor's assets, and it matures on July 3, 2030, subject to exceptions in the agreement.

Pricing depends on the senior secured net leverage ratio. Base-rate revolving loans carry a spread of 1.50% to 2.25% over the base rate. SOFR-based loans carry a spread of 2.50% to 3.25%. The company may also add new term facilities, or increase existing term loans, by up to the greater of $225.0 million and 100% of Consolidated EBITDA as defined in the agreement. The agreement contains customary affirmative and negative covenants, financial covenants, representations and events of default.

Repaying the old debt

Pacira used a portion of the $300.0 million of revolving loans on July 3, 2025 to repay the indebtedness under its existing credit agreement, which is dated March 31, 2023 and covers the term loan A facility. The company terminated that agreement and says it paid no prepayment penalties or fees to do so. The earlier agreement was described in 8-Ks filed on April 3, 2023 and May 8, 2024.

The 8-K does not say how much of the revolver was drawn at closing. The credit agreement's definitions also refer to two series of Pacira convertible notes: the 2025 Convertible Notes, with a scheduled maturity date of August 1, 2025, and the 2029 Convertible Notes, with a scheduled maturity date of May 15, 2029.

The business behind the loan

The 2024 annual report, filed February 27, 2025, says Pacira's mission is to deliver non-opioid pain therapies and that it has three commercialized non-opioid treatments: EXPAREL, ZILRETTA and iovera. It is also advancing PCRX-201, a gene therapy vector platform. The company had 790 employees at December 31, 2024.

Revenue is concentrated. McKesson Drug Company, Cardinal Health, Inc. and AmerisourceBergen Health Corporation accounted for 34%, 23% and 20% of total revenues in 2024, processing EXPAREL orders under a drop-ship program. The 8-K does not describe any covenant breach or waiver.

What comes next

The revolver matures on July 3, 2030. The 8-K says the facility provides for ongoing working capital, but it does not give the drawn balance or the leverage ratio that now sets the spread. Kristen Williams, chief administrative officer and secretary, signed the 8-K.

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