Emergent BioSolutions announced today that it closed a new credit facility agreement with Oak Hill Advisors for a $250 million term loan.

Gaithersburg, Maryland-based Emergent, a maker of Narcan nasal spray for opioid overdose reversal, used a portion of the proceeds of the new term loan to repay all amounts outstanding under the senior term loan facility under the company’s amended and restated credit agreement from 2018 with Wells Fargo. That agreement was scheduled to mature in May 2025.

The new term loan maturity extends up to five years through August 2029. Emergent plans to use excess proceeds to add cash to its balance sheet. In connection with the new loan agreement, Emergent issued lenders warrants to purchase 2.5 million shares of common stock. The company also agreed to issue lenders shares of common stock with an aggregate value of $10 million.

Papa continued, “We are thrilled to secure this new credit facility with Oak Hill Advisors as we are on track to reduce net debt by more than $200 million this year, positioning Emergent to enter its next phase of our turnaround, enabling future growth and additional investment opportunities with much greater freedom and flexibility to operate through favorable terms.”

“For the past 18 months, Emergent has executed on a series of actions to strengthen the balance sheet and streamline operations,” said Joe Papa, president and CEO of Emergent. “These steps, which include finalizing several asset/site divestures, resolving legacy issues, and now, securing this significant debt refinancing, are critical to stabilizing our financial profile.”