ADMA Biologics Announces Partial Paydown of Revolving Credit Facility
ADMA Biologics has announced a partial paydown of its revolving credit facility, utilizing $30 million of cash on hand to repay Ares Capital. This move reduces ADMA's total debt to $105 million, a 22% reduction from its previous level. The company's debt now consists of a $62.5 million term loan and $42.5 million outstanding under the revolving credit facility. ADMA's President and CEO, Adam Grossman, stated that this decision reflects the company's confidence in sustained earnings growth and anticipated ongoing cash generation. The reduced interest expense is expected to enhance earnings growth potential in the near future. ADMA plans to further optimize its cost of both debt and equity capital moving forward.
ADMA Biologics ha annunciato un parziale rimborso della sua linea di credito rotativa, utilizzando 30 milioni di dollari di liquidità disponibile per rimborsare Ares Capital. Questa mossa riduce il debito totale di ADMA a 105 milioni di dollari, con una riduzione del 22% rispetto al livello precedente. Il debito della società ora consiste in un prestito a termine di 62,5 milioni di dollari e 42,5 milioni di dollari in sospeso sotto la linea di credito rotativa. Adam Grossman, Presidente e CEO di ADMA, ha dichiarato che questa decisione riflette la fiducia della società nella crescita sostenuta degli utili e l'aspettativa di una continua generazione di cassa. Si prevede che la riduzione delle spese per interessi incrementerà il potenziale di crescita degli utili nel prossimo futuro. ADMA intende ottimizzare ulteriormente i suoi costi sia del debito che del capitale azionario in futuro.
ADMA Biologics ha anunciado un pago parcial de su línea de crédito revolving, utilizando 30 millones de dólares de efectivo disponible para reembolsar a Ares Capital. Este movimiento reduce la deuda total de ADMA a 105 millones de dólares, una reducción del 22% desde su nivel anterior. La deuda de la compañía ahora consiste en un préstamo a plazo de 62,5 millones de dólares y 42,5 millones de dólares pendientes bajo la línea de crédito revolving. Adam Grossman, Presidente y CEO de ADMA, declaró que esta decisión refleja la confianza de la compañía en el crecimiento sostenido de las ganancias y la generación continua de efectivo anticipada. Se espera que la reducción de los gastos por intereses mejore el potencial de crecimiento de las ganancias en un futuro cercano. ADMA planea optimizar aún más sus costos tanto de deuda como de capital contable en el futuro.
ADMA Biologics는 3천만 달러의 현금을 사용하여 Ares Capital에 대한 회전 신용 시설의 일부 상환을 발표했습니다. 이로 인해 ADMA의 총 부채는 1억 5백만 달러로 감소했으며, 이는 이전 수준에서 22% 감소한 것입니다. 현재 회사의 부채는 6천2백50만 달러의 터미론 대출과 회전 신용 시설에 대한 4천2백50만 달러의 미결제 금액으로 구성되어 있습니다. ADMA의 사장이자 CEO인 Adam Grossman은 이 결정이 회사의 지속적인 수익 성장에 대한 신뢰와 예상되는 지속적인 현금 생성 반영이라고 밝혔습니다. 감소한 이자 비용은 단기적인 수익 성장 잠재력을 향상시킬 것으로 예상됩니다. ADMA는 앞으로 부채와 자본 비용 모두를 추가로 최적화할 계획입니다.
ADMA Biologics a annoncé un remboursement partiel de sa ligne de crédit revolvante, utilisant 30 millions de dollars de liquidités disponibles pour rembourser Ares Capital. Ce mouvement réduit la dette totale d'ADMA à 105 millions de dollars, soit une réduction de 22% par rapport à son niveau précédent. La dette de l'entreprise se compose désormais d'un prêt à terme de 62,5 millions de dollars et de 42,5 millions de dollars restant à payer sous la ligne de crédit revolvante. Adam Grossman, Président et CEO d'ADMA, a déclaré que cette décision reflète la confiance de l'entreprise dans une croissance soutenue des bénéfices et la génération de liquidités continue attendue. La réduction des frais d'intérêts devrait améliorer le potentiel de croissance des bénéfices dans un avenir proche. ADMA prévoit d'optimiser davantage ses coûts de financement, tant pour la dette que pour le capital propre, à l'avenir.
ADMA Biologics hat eine teilweise Rückzahlung seiner revolvierenden Kreditfazilität angekündigt und 30 Millionen Dollar vorhandenes Bargeld verwendet, um Ares Capital zurückzuzahlen. Dieser Schritt reduziert die Gesamtschuld von ADMA auf 105 Millionen Dollar, was einer 22%igen Verringerung im Vergleich zum vorherigen Stand entspricht. Die Schulden des Unternehmens bestehen nun aus einem 62,5 Millionen Dollar großen Darlehen und 42,5 Millionen Dollar ausstehenden Beträgen aus der revolvierenden Kreditfazilität. Adam Grossman, Präsident und CEO von ADMA, erklärte, dass diese Entscheidung das Vertrauen des Unternehmens in ein nachhaltiges Gewinnwachstum und die erwartete anhaltende Generierung von Liquidität widerspiegelt. Die gesenkten Zinsaufwendungen werden voraussichtlich das Wachstumspotenzial der Erträge in naher Zukunft verbessern. ADMA plant, die Kosten sowohl für Schulden als auch für Eigenkapital in Zukunft weiter zu optimieren.
- Repayment of $30 million from revolving credit facility
- 22% reduction in total debt to $105 million
- No prepayment penalties incurred
- Expected enhancement of earnings growth potential due to lowered interest expense
- Demonstration of strong cash flow generation capability
- None.
ADMA Biologics' $30 million debt repayment is a significant positive signal for the company's financial health. This
The reduction in interest expenses should directly boost the bottom line, potentially accelerating earnings growth. This move also strengthens ADMA's balance sheet, which could improve its financial ratios and potentially lead to better terms for future financing. Investors should monitor the company's cash position post-repayment and its impact on future growth investments.
This debt repayment reflects ADMA's confidence in its business model and future cash flows. It's a strategic move that could enhance investor perception of the company's financial stability. The biopharmaceutical sector often requires significant capital, so demonstrating fiscal responsibility is crucial.
The mention of "organically generated cash flow" suggests sustainable revenue streams, which is particularly noteworthy in the specialty biologics market. This could position ADMA favorably against competitors and potentially attract more institutional investors. However, it's important to balance debt reduction with maintaining sufficient liquidity for R&D and market expansion in this fast-paced industry.
Cash on Hand Utilized to Repay
Lowers ADMA’s Total Debt to
Further Supports Earnings Growth Outlook
RAMSEY, N.J. and BOCA RATON, Fla., Aug. 14, 2024 (GLOBE NEWSWIRE) -- ADMA Biologics, Inc. (Nasdaq: ADMA) (“ADMA” or the “Company”), an end-to-end commercial biopharmaceutical company dedicated to manufacturing, marketing and developing specialty biologics, today announced it has repaid
"ADMA’s organically generated cash flow has enabled the pay down of
About ADMA Biologics, Inc. (ADMA)
ADMA Biologics is an end-to-end commercial biopharmaceutical company dedicated to manufacturing, marketing and developing specialty biologics for the treatment of immunodeficient patients at risk for infection and others at risk for certain infectious diseases. ADMA currently manufactures and markets three United States Food and Drug Administration (FDA)-approved plasma-derived biologics for the treatment of immune deficiencies and the prevention of certain infectious diseases: BIVIGAM® (immune globulin intravenous, human) for the treatment of primary humoral immunodeficiency (PI); ASCENIV™ (immune globulin intravenous, human – slra
Cautionary Note Regarding Forward-Looking Statements
This press release contains “forward-looking statements” pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995, about ADMA Biologics, Inc. (“we,” “our” or the “Company”). Forward-looking statements include, without limitation, any statement that may predict, forecast, indicate, or imply future results, performance or achievements, and may contain such words as “confident,” “estimate,” “project,” “intend,” “forecast,” “target,” “anticipate,” “plan,” “planning,” “expect,” “believe,” “will,” “is likely,” “will likely,” “should,” “could,” “would,” “may,” or, in each case, their negative, or words or expressions of similar meaning. These forward-looking statements include, but are not limited to, statements about the Company’s future results of operations, including, but not limited to, the Company’s earnings growth outlook, cash balance and cost of debt and equity capital, as well as expected benefits from paying down outstanding debt. Actual events or results may differ materially from those described in this press release due to a number of important factors. Current and prospective security holders are cautioned that there also can be no assurance that the forward-looking statements included in this press release will prove to be accurate. Except to the extent required by applicable laws or rules, ADMA does not undertake any obligation to update any forward-looking statements or to announce revisions to any of the forward-looking statements. Forward-looking statements are subject to many risks, uncertainties and other factors that could cause our actual results, and the timing of certain events, to differ materially from any future results expressed or implied by the forward-looking statements, including, but not limited to, the risks and uncertainties described in our filings with the U.S. Securities and Exchange Commission, including our most recent reports on Form 10-K, 10-Q and 8-K, and any amendments thereto.
INVESTOR RELATIONS CONTACT:
Michelle Pappanastos
Senior Managing Director, Argot Partners | 212-600-1902 | michelle@argotpartners.com
FAQ
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