New York, New York, Sept. 04, 2024 (GLOBE NEWSWIRE) — Oak Hill Advisors (“OHA”) acted as administrative agent and exclusive lender for a $250 million term loan facility in support of Emergent BioSolutions Inc. (“Emergent”) EBSa global company that delivers life-saving and life-extending products that address public health threats. The new debt financing will refinance Emergent’s existing credit facility, marking an important step in its multi-year plan to stabilize its financial profile.
In connection with the execution of the Term Loan, Emergent issued to OHA 2.5 million warrants in addition to shares of common stock for an aggregate value of $10 million. Both the number of shares and the exercise prices of the warrants will be calculated based on the volume-weighted average price per share for the 30 business days ending, but not including, the tenth business day following the closing date.
This customized term loan structure exemplifies OHA’s strategic approach to partnering with businesses to address complex and unique financial situations.
“Over the past 18 months, Emergent has taken a number of actions to strengthen our balance sheet and optimize our operations,” said Joe Papa, Emergent's president and chief executive officer. “These steps, which include completing several asset and site divestitures, resolving legacy issues, and now securing this significant debt refinancing, are critical to stabilizing our financial profile.”
Papa continued, “We are delighted to secure this new credit facility with Oak Hill Advisors as we are on track to reduce net debt by over $200 million this year, positioning Emergent to enter its next phase of recovery, enabling future growth and additional investment opportunities with much greater freedom and flexibility to operate through favorable terms.”
Joseph Goldschmid, CEO of Oak Hill Advisors, added, “We are delighted to be a capital partner for Emergent. This financing provides the company with additional liquidity and flexibility to deliver on its business plan and continue to deliver critical, life-saving products. We are excited to support and partner with the management team and the company in this next chapter of growth.”
For more information regarding the new credit facility agreement, please visit Emergent’s recently filed Form 8-K and press release. here.
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About OHA: Oak Hill Advisors (OHA) is a leading global credit-focused alternative asset manager with over 30 years of investment experience. OHA works with institutions and individuals and seeks to deliver a consistent track record of attractive risk-adjusted returns. The firm manages approximately $65 billion of capital in credit strategies, including private credit, high yield bonds, leveraged loans, distressed and non-distressed debt, and collateralized loan obligations as of June 30, 2024. OHA’s emphasis on long-term partnerships with corporates, sponsors, and other partners provides access to a proprietary opportunity set, enabling customized credit solutions throughout all market cycles.
With more than 400 experienced professionals across six global offices, OHA offers a collaborative approach to provide investors with a single platform to meet their diverse credit needs. OHA is the private markets platform of T. Rowe Price Group, Inc. (NASDAQ – GS: TROW). For more information, please visit oakhilladvisors.com.
Natalie Harvard, Head of Investor Relations & Partner Oak Hill Advisors, L.P. 212-326-1505 nharvard@oakhilladvisors.com Kristin Celestino, Public Relations Oak Hill Advisors, L.P. 817-215-2934 kcelestino@oakhilladvisors.com
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