aibioPacira signs $300.0 million revolving credit facility and repays term loan
Tickers PCRX
Pacira signed a $300.0 million senior secured revolving credit facility with Wells Fargo as administrative agent, and used part of it to repay its 2023 term loan A. The filing does not say how much was drawn.
Key facts
- Company
- Pacira BioSciences, Inc. (NASDAQ: PCRX)
- News type
- Distress
- Primary source
- Pacira BioSciences, Inc. 8-K (2025-07-07)
Pacira BioSciences, Inc. (Nasdaq: PCRX) entered into a credit agreement on July 3, 2025 with Wells Fargo Bank, National Association, as administrative agent, swingline lender and an issuing bank, and with certain lenders. The company disclosed the agreement in an 8-K filed July 7, 2025. The filing names no other lender, arranger, bookrunner, placement agent or counsel for the facility.
The agreement refinances the debt outstanding under the company's credit agreement dated as of March 31, 2023, which covered a term loan A facility. It also provides for ongoing working capital. The company used a portion of the $300.0 million of revolving loans to repay that debt and terminated the existing agreement. The company says it paid no prepayment penalties or fees to end the 2023 agreement. The 8-K does not say how much of the $300.0 million was drawn at closing, or how much remains outstanding.
Terms of the revolver
The facility carries a $300.0 million aggregate commitment, with a $10.0 million letter of credit sublimit and a $15.0 million swingline loan sublimit. It is secured by substantially all of the assets of Pacira and of each subsidiary guarantor, and it is scheduled to mature on July 3, 2030, subject to exceptions in the agreement.
Pricing depends on the company's Senior Secured Net Leverage Ratio. Alternate base rate borrowings carry a spread of 1.50% to 2.25%. Term benchmark and daily simple SOFR borrowings carry a spread of 2.50% to 3.25%. The 8-K gives the ranges but not the leverage level at which the company would pay the top or bottom of either range.
The agreement allows the company, subject to certain conditions, to add 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. That capacity sits on top of the revolver's commitment. The 8-K also refers to customary affirmative and negative covenants, financial covenants and events of default, but it does not state the levels of the financial covenants.
The 8-K says its summary is qualified in its entirety by the full credit agreement, which is attached as Exhibit 10.1.
The debt being replaced
The 8-K says the existing agreement was described in Form 8-K reports filed April 3, 2023 and May 8, 2024, and it does not restate the terms of that loan.
The 2023 agreement is replaced by a revolving commitment with a 2030 maturity. The filing does not say whether the company intends to keep the revolver undrawn, or what balance it expects to carry.
The business behind the borrowing
The annual report for 2024, filed in February 2025, describes Pacira as a company with three commercialized non-opioid treatments. EXPAREL, a long-acting local analgesic, had net product sales of $549.0 million in 2024, and accounted for 78% of the company's total revenues that year. The filing says EXPAREL is the only product indicated for local analgesia by infiltration in patients six years and older, and that safety and efficacy have not been established in other nerve blocks.
ZILRETTA, a single-shot corticosteroid injection for knee osteoarthritis pain, had net product sales of $118.1 million in 2024. The iovera system is the third product. In February 2025 the company acquired GQ Bio Therapeutics GmbH, which the filing lists among its acquisitions alongside MyoScience in 2019 and Flexion Therapeutics in 2021.
The 8-K gives no revenue, cash, debt or earnings figures for the company.
What the company gets and gives
The company gets a $300.0 million revolving source of working capital, and it replaces a term loan with a revolving commitment maturing in 2030. In return, the facility is secured by substantially all of the company's assets and those of its subsidiary guarantors, and it carries covenants and leverage-based pricing that the 8-K describes only in general terms.