Morristown-based Pernix Therapeutics Holdings, Inc., a specialty pharmaceutical company, today announced the completion of a new three-year $50 million revolving credit facility with Wells Fargo. The new facility bears an interest rate of LIBOR plus 1.5 percent to LIBOR plus 2.0 percent versus the company’s prior revolving credit facility of LIBOR plus 7.5 percent with a 1.5 percent LIBOR floor, and is a substantial interest rate reduction.
“This new revolving credit facility reflects our commitment to lowering our cost of capital and provides us with significant additional flexibility to support our growth strategy,” said Sanjay Patel, Chief Financial Officer.
The new revolving credit facility may be used for general corporate as well as strategic purposes, and is scheduled to mature in August 2018. As of June 30, 2015, Pernix had $7.9 million in outstanding borrowings under the company’s previous revolver.
This new revolving credit facility replaces the company’s previous credit facility.Related Articles: