INDEBTEDNESS

12 Months Ended

Dec. 31, 2020

INDEBTEDNESS

INDEBTEDNESS

3. INDEBTEDNESS

Credit Facility

Our five-year Senior Secured Credit Facility (the “Credit Facility”) is comprised of a $72.2 million Term Loan, a $118.0 million DDTL, and a $75.0 million revolving credit facility (the “Revolver”), all of which mature in December 2023. The Credit Facility has a subjective acceleration clause in case of a material adverse event. The Term Loan includes a repayment schedule, pursuant to which $6.3 million of the loan will be paid in quarterly installments during the 12 months ended December 31, 2021. As of December 31, 2020, $6.3 million of the loan is recorded as current borrowings in the consolidated balance sheets. The DDTL includes a repayment schedule,

pursuant to which $7.4 million will be paid in quarterly installments during the 12 months ended December 31, 2021. As of December 31, 2020, $7.4 million of the loan is recorded as current borrowings in the consolidated balance sheets. In March 2020, we drew $15.0 million under the Revolver, of which $7.5 million has been repaid as of December 31, 2020. As of December 31, 2020, $67.5 million remained available for borrowing under the Revolver. Amounts drawn on the Term Loan, DDTL, and Revolver bear an interest rate equal to, at our option, either a LIBOR rate plus 1.50% to 2.75% per annum, depending on our total leverage ratio or an alternative base rate plus an applicable base rate margin, which varies within a range of 0.50% to 1.75%, depending on our total leverage ratio. On the Revolver, we incur a commitment fee at a rate per annum that varies within a range of 0.25% to 0.50%, depending on our leverage ratio. As of December 31, 2020, our interest rate on outstanding borrowings is LIBOR plus 2.25% and our commitment fee rate is 0.4%.

The Credit Facility is secured by a lien on substantially all of ANI Pharmaceuticals, Inc.’s and its principal domestic subsidiary’s assets and any future domestic subsidiary guarantors’ assets. The Credit Facility imposes financial covenants consisting of a maximum total leverage ratio, which was, as of December 31, 2020, no greater than 3.25 to 1.00 and a minimum fixed charge coverage ratio, which shall be greater than or equal to 1.25 to 1.00. The primary non-financial covenants under the Credit Facility limit, subject to various exceptions, our ability to incur future indebtedness, to place liens on assets, to pay dividends or make other distributions on our capital stock, to repurchase our capital stock, to conduct acquisitions, to alter our capital structure, and to dispose of assets. As of December 31, 2020, we are compliant with our financial covenants.

The carrying value of the current and non-current components of the Term Loan and DDTL as of December 31, 2020 and 2019 are:

	Current
	December 31,		December 31,
(in thousands)	2020		2019
Current borrowing on debt	$	13,691	$	10,412
Deferred financing costs		(448)		(471)
Current debt, net of deferred financing costs	$	13,243	$	9,941

	Non-Current
	December 31,		December 31,
(in thousands)	2020		2019
Non-current borrowing on debt	$	165,755	$	177,069
Deferred financing costs		(812)		(1,261)
Non-current debt, net of deferred financing costs and current component	$	164,943	$	175,808

As of December 31, 2020, we had a $65.9 million balance on the Term Loan, $113.6 million balance on the DDTL, and $7.5 million balance on the Revolver. Of the $0.8 million of deferred debt issuance costs allocated to the Revolver, $0.5 million is included in other non-current assets in the accompanying consolidated balance sheets and $0.3 million is included in prepaid expenses and other current assets in the accompanying consolidated balance sheets. Of the $0.3 million of deferred debt issuance costs allocated to the DDTL, $0.1 million is classified as a direct deduction to the current portion of the DDTL in the accompanying consolidated balance sheets and $0.2 million is classified as a direct reduction to the non-current portion of the DDTL in the accompanying consolidated balance sheets. Of the $0.9 million of deferred debt issuance costs allocated to the Term Loan, $0.3 million is classified as a direct deduction to the current portion of the Term Loan in the accompanying consolidated balance sheets and $0.6 million is classified as a direct deduction to the non-current portion of the Term Loan in the accompanying consolidated balance sheets.

The contractual maturity of our Term Loan, DDTL, and Revolver is as follows for the years ending December 31:

(in thousands)	Term Loan		DDTL		Revolver
2021	$	6,316	$	7,375	$	—
2022		5,414		8,850		—
2023		54,141		97,350		7,500
Total	$	65,871	$	113,575	$	7,500

The following table sets forth the components of total interest expense related to the Term Loan, DDTL, and Revolver recognized in our consolidated statements of operations for the year ended December 31:

		Years Ended December 31,
(in thousands)	2020		2019		2018
Contractual coupon	$	8,847	$	6,635	$	7,170
Amortization of debt discount		—		5,647		7,002
Amortization of finance fees		720		1,377		1,463
Capitalized interest		(88)		(191)		(724)
	$	9,479	$	13,468	$	14,911