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ADMA Biologics Announces Partial Paydown of Senior Term Loan Credit Facility

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ADMA Biologics announced a $30 million partial paydown of its senior secured term loan facility with Ares Capital, using cash on hand. This represents the second paydown in four months, reducing the company's total gross debt by 29% to $75 million. The remaining debt consists of a $42.5 million revolving credit facility and $32.5 million outstanding under the term loan facility.

The company attributes this debt reduction to organically generated cash flow, and management expects the lowered interest expense to enhance earnings growth potential in upcoming periods. ADMA plans to continue optimizing its cost of both debt and equity capital moving forward.

ADMA Biologics ha annunciato un pagamento parziale di 30 milioni di dollari del suo prestito garantito senior presso Ares Capital, utilizzando la liquidità disponibile. Questo rappresenta il secondo pagamento negli ultimi quattro mesi, riducendo il debito lordo totale dell'azienda del 29% a 75 milioni di dollari. Il debito residuo consiste in una linea di credito rotativa di 42,5 milioni di dollari e 32,5 milioni di dollari residui sotto il prestito a termine.

L'azienda attribuisce questa riduzione del debito al flusso di cassa generato organicamente, e la direzione si aspetta che la diminuzione delle spese per interessi migliori il potenziale di crescita degli utili nei periodi a venire. ADMA prevede di continuare a ottimizzare i costi del capitale di debito e di equity in futuro.

ADMA Biologics anunció un pago parcial de 30 millones de dólares de su línea de crédito garantizada senior con Ares Capital, utilizando efectivo disponible. Esto representa el segundo pago en cuatro meses, reduciendo la deuda bruta total de la empresa en un 29% a 75 millones de dólares. La deuda restante consiste en una línea de crédito rotativa de 42,5 millones de dólares y 32,5 millones de dólares en el préstamo a plazo.

La empresa atribuye esta reducción de la deuda al flujo de efectivo generado orgánicamente, y la dirección espera que la disminución de los gastos por intereses mejore el potencial de crecimiento de ganancias en los próximos períodos. ADMA planea continuar optimizando su costo de capital tanto de deuda como de acciones en el futuro.

ADMA Biologics는 Ares Capital의 선순위 담보 용자 시설에 대해 3000만 달러 규모의 부분 상환을 발표했으며, 현금을 사용하였습니다. 이는 4개월 이내에 두 번째 상환으로, 회사의 총 채무를 29% 줄여 7500만 달러로 낮추었습니다. 남은 채무는 4250만 달러 규모의 회전 신용 시설과 3250만 달러의 기한 대출금으로 구성되어 있습니다.

회사는 이러한 채무 감소를 유기적으로 생성된 현금 흐름 덕분으로 보고 있으며, 경영진은 이자 비용이 줄어듦에 따라 향후 이익 성장 잠재력이 향상될 것으로 기대하고 있습니다. ADMA는 향후 부채 및 자본 비용 최적화를 계속할 계획입니다.

ADMA Biologics a annoncé un remboursement partiel de 30 millions de dollars de son prêt garanti senior auprès d'Ares Capital, utilisant des liquidités disponibles. Cela représente le deuxième remboursement en quatre mois, réduisant la dette brute totale de la société de 29 % à 75 millions de dollars. La dette restante se compose d'une facilité de crédit de 42,5 millions de dollars et de 32,5 millions de dollars restants dans le cadre de la facilité de prêt à terme.

L'entreprise attribue cette réduction de la dette à un flux de trésorerie généré organiquement, et la direction s'attend à ce que la diminution des charges d'intérêt améliore le potentiel de croissance des bénéfices dans les périodes à venir. ADMA prévoit de continuer à optimiser ses coûts de capital en dette et en capitaux propres à l'avenir.

ADMA Biologics gab bekannt, dass 30 Millionen US-Dollar zur teilweisen Rückzahlung seiner vorrangigen gesicherten Kreditfazilität bei Ares Capital verwendet wurden, und zwar aus vorhandenem Bargeld. Dies stellt die zweite Rückzahlung in vier Monaten dar, wodurch die Gesamtverschuldung des Unternehmens um 29 % auf 75 Millionen US-Dollar gesenkt wurde. Die verbleibende Verschuldung besteht aus einer revolvierenden Kreditfazilität über 42,5 Millionen US-Dollar und einem ausstehenden Betrag von 32,5 Millionen US-Dollar aus der Kreditfazilität.

Das Unternehmen führt diese Schuldenreduzierung auf organisch erwirtschaftete Cashflows zurück, und das Management erwartet, dass die gesenkten Zinsaufwendungen das Wachstumspotenzial der Erträge in den kommenden Perioden steigern werden. ADMA plant, auch in Zukunft die Kosten sowohl für Fremd- als auch Eigenkapital zu optimieren.

Positive
  • Reduced total gross debt by 29% to $75 million
  • Second debt paydown in four months demonstrates strong cash flow generation
  • Lower interest expense expected to enhance earnings growth
  • Company using organic cash flow for debt reduction
Negative
  • Still maintains $75 million in total debt obligations

Insights

The $30 million debt reduction represents a strategic financial move that significantly improves ADMA's balance sheet health. The company's ability to pay down debt using cash on hand signals robust operational cash flow generation and financial discipline. The reduction in total debt to $75 million, marking a 29% decrease, will result in meaningful interest expense savings, directly boosting bottom-line performance. This strengthened financial position may enhance ADMA's flexibility for future growth initiatives and potentially improve its borrowing terms. The reduction in leverage could also make the company more attractive to institutional investors who prioritize strong balance sheets. The company's capital structure now consists of a more balanced mix between a $42.5 million revolving credit facility and $32.5 million term loan, providing better operational flexibility. The second major debt paydown in just four months demonstrates accelerating financial strength and management's commitment to optimizing the capital structure.

The strategic debt reduction aligns with broader industry trends where biotech companies are prioritizing financial stability amid rising interest rates. ADMA's ability to utilize cash reserves for debt reduction while maintaining operational growth suggests strong underlying business fundamentals. The market typically rewards such deleveraging initiatives, especially in the current macroeconomic environment where balance sheet strength is paramount. This move could potentially lead to multiple expansion as reduced financial risk often correlates with higher valuation multiples. The biotech sector has seen increased investor focus on companies demonstrating fiscal responsibility alongside commercial execution. ADMA's proactive debt management, coupled with its end-to-end commercial biopharmaceutical business model, positions it favorably within the specialty biologics space. The emphasis on organic growth funding debt reduction, rather than relying on equity dilution, should resonate positively with institutional investors focused on sustainable business models.

Cash on Hand Utilized to Repay $30 Million of Senior Secured Term Loan Facility to Ares Capital

Lowers ADMA’s Total Debt to $75 Million, a 29% Reduction

Further Supports Earnings Growth Outlook

RAMSEY, N.J. and BOCA RATON, Fla., Dec. 20, 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 $30 million from its original $62.5 million senior secured term loan facility with Ares Capital. Following the partial paydown, ADMA has further reduced its total gross debt to $75 million, comprised of its $42.5 million revolving credit facility and $32.5 million now outstanding under its term loan credit facility. The partial paydown was funded by utilizing cash on hand.

"ADMA’s organically generated cash flow has enabled the pay down of $30 million of our senior secured credit facility,” said Adam Grossman, President and Chief Executive Officer of ADMA. “The second paydown of our senior credit facility in four months reduces our total gross debt by 29%, and the lowered interest expense is expected to further enhance our earnings growth potential in the immediate periods ahead. This decision is a testament to our confidence in the sustained growth of earnings and the anticipated ongoing cash generation. We expect to further reduce and optimize ADMA’s cost of both debt and equity capital going forward.”

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 10% liquid) for the treatment of PI; and NABI-HB® (hepatitis B immune globulin, human) to provide enhanced immunity against the hepatitis B virus. ADMA manufactures its immune globulin products at its FDA-licensed plasma fractionation and purification facility located in Boca Raton, Florida. Through its ADMA BioCenters subsidiary, ADMA also operates as an FDA-approved source plasma collector in the U.S., which provides its blood plasma for the manufacture of its products. ADMA’s mission is to manufacture, market and develop specialty biologics and human immune globulins targeted to niche patient populations for the treatment and prevention of certain infectious diseases and management of immune compromised patient populations who suffer from an underlying immune deficiency, or who may be immune compromised for other medical reasons. ADMA holds numerous U.S. and foreign patents related to and encompassing various aspects of its products and product candidates. For more information, please visit www.admabiologics.com.

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

How much debt did ADMA Biologics pay down in December 2023?

ADMA Biologics paid down $30 million of its senior secured term loan facility with Ares Capital in December 2023.

What is ADMA's remaining debt structure after the December 2023 paydown?

After the paydown, ADMA's total debt is $75 million, consisting of a $42.5 million revolving credit facility and $32.5 million in term loan credit facility.

What percentage did ADMA reduce its total gross debt by?

ADMA reduced its total gross debt by 29% through this partial paydown.

How did ADMA fund the $30 million debt paydown?

ADMA funded the $30 million debt paydown using cash on hand generated from organic operations.

What is the expected impact of ADMA's debt reduction on earnings?

The debt reduction and resulting lower interest expense is expected to enhance ADMA's earnings growth potential in immediate future periods.

ADMA Biologics, Inc.

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4.45B
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Biotechnology
Biological Products, (no Disgnostic Substances)
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United States of America
RAMSEY