Emergent BioSolutions Inc. (NYSE: EBS) closed on a new $150 million term loan with OrbiMed, using the proceeds to repay its previous term loan facility with Oak Hill Advisors. The company also amended its asset-based revolving loan facility with Wells Fargo National Association, maintaining borrowing capacity of up to $50 million.

Both the new term loan and the amended revolving credit facility extend maturities to April 2031. The previous term loan was set to mature in August 2029, while the revolving facility was scheduled to mature in September 2029.

The refinancing reduces interest expense on the term loan by 200 basis points annually and provides less restrictive covenants. The new agreements also include additional capacity to incur incremental debt through a committed delayed draw term loan and expanded debt baskets.

"By refinancing our prior Term Loan facility and extending maturities, we expect to reduce our interest expense and bolster our cash position thereby allowing us to opportunistically deploy capital on value-creating strategic initiatives to advance our multi-year transformation plan," stated Joe Papa, president and CEO of Emergent.

The Maryland-based biotechnology company develops protective and life-saving solutions for health threats including smallpox, mpox, botulism, Ebola, anthrax and opioid overdose emergencies.

Details of the new term loan agreement are included in Emergent's Current Report on Form 8-K, according to the company's statement.