Jazz Pharmaceuticals Increases Commitments and Extends Maturity Date of Revolving Credit Facility

Jazz Pharmaceuticals plc (NASDAQ: JAZZ) has recently announced an amendment to its Credit Agreement to increase commitments and extend the maturity date of its initial revolving credit facility. The agreement, dated November 26, 2024, involves Jazz Financing Lux S.à r.l., Jazz Pharmaceuticals plc, and certain subsidiaries of the company, as borrowers or guarantors.

This amendment, referred to as the Amendment, effectively amends the existing Credit Agreement dated May 5, 2021. The Amended Credit Agreement sees an increase in the initial revolving credit facility from $500 million to $885 million, now known as the Revolving Credit Facility. It retains the same class of revolving facility loans as the initial facility, with similar terms concerning prepayment, security, and events of default.

The Revolving Credit Facility’s maturity date has been extended from May 5, 2026, to November 26, 2029. Certain conditions outlined in the agreement may shorten the maturity date based on the outstanding 2026 Notes, Term Loan Indebtedness, and Senior Note Indebtedness.

Loans under the Revolving Credit Facility will accrue interest based on Term SOFR or the prime lending rate, along with an applicable margin. Initially set at 2.00% for Term SOFR borrowings and 1.00% for prime lending rate borrowings, the applicable margin will adjust based on the Company’s first lien secured net leverage ratio.

The agreement also includes financial covenants related to maintaining specific leverage and interest coverage ratios for the Revolving Credit Facility. In the event of significant acquisitions, adjustments to the maximum first lien secured net leverage ratio covenant may be made.

This announcement signifies Jazz Pharmaceuticals’ strategic financial management approach to enhance its liquidity position and support potential growth opportunities.

The full text of the Amendment can be accessed through Exhibit 10.1 of the filing, providing comprehensive details of the agreement.

This update falls under Item 1.01 of the filing, which pertains to Entry into a Material Definitive Agreement, and is duly incorporated into Item 2.03-Creation of a Direct Financial Obligation or an Obligation under an Off-Balance Sheet Arrangement of a Registrant.

Investors and stakeholders are encouraged to review the complete text of the filing for a comprehensive understanding of the recent developments at Jazz Pharmaceuticals.

The company’s Chief Financial Officer, Philip L. Johnson, has duly signed the report on behalf of Jazz Pharmaceuticals Public Limited Company, underscoring the official verification of the information provided.

This article was generated by an automated content engine and was reviewed by a human editor prior to publication. For additional information, read Jazz Pharmaceuticals’s 8K filing here.

About Jazz Pharmaceuticals

Jazz Pharmaceuticals plc identifies, develops, and commercializes pharmaceutical products for unmet medical needs in the United States, Europe, and internationally. The company offers Xywav for cataplexy or excessive daytime sleepiness (EDS) with narcolepsy and idiopathic hypersomnia; Xyrem to treat cataplexy or EDS with narcolepsy; Epidiolex for seizures associated with Lennox-Gastaut and Dravet syndromes, or tuberous sclerosis complex; Zepzelca to treat metastatic small cell lung cancer, or with disease progression on or after platinum-based chemotherapy; Rylaze for acute lymphoblastic leukemia or lymphoblastic lymphoma; Enrylaze to treat acute lymphoblastic leukemia and lymphoblastic lymphoma; Defitelio to treat severe hepatic veno-occlusive disease; and Vyxeos for newly-diagnosed therapy-related acute myeloid leukemia.