INDEBTEDNESS

6 Months Ended

Jun. 30, 2021

INDEBTEDNESS

INDEBTEDNESS

4. INDEBTEDNESS

Credit Facility

Our five-year Senior Secured Credit Facility (the “Credit Facility”) is comprised of a $72.2 million term loan (the “Term Loan”), a $118.0 million delayed draw term loan (“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 $6.8 million of the loan will be paid in quarterly installments during the 12 months ended June 30, 2022. As of June 30, 2021, $6.8 million of the Term Loan is recorded as current borrowings in the consolidated balance sheets. The DDTL includes a repayment schedule, pursuant to which $8.9 million will be paid in quarterly installments during the 12 months ended June 30, 2022. As of June 30, 2021, $8.9 million of the DDTL is recorded as current borrowings in the consolidated balance sheets. As of June 30, 2021, there is $31.5 million outstanding and payable on our Revolver, all of which is recorded as a long-term borrowing on the consolidated balance sheets. As of June 30, 2021, $43.5 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 1-month 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 June 30, 2021, our interest rate on outstanding borrowings was 1-month LIBOR plus 2.00% and our commitment fee rate was 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 is subject to customary financial and nonfinancial covenants.

The carrying value of the current and non-current components of the Term Loan and DDTL as of June 30, 2021 and December 31, 2020 are:

	Current
	June 30,		December 31,
(in thousands)	2021		2020
Current borrowing on debt	$	15,617	$	13,691
Deferred financing costs		(435)		(448)
Current debt, net of deferred financing costs	$	15,182	$	13,243

	Non-Current
	June 30,		December 31,
(in thousands)	2021		2020
Non-current borrowing on debt	$	158,623	$	165,755
Deferred financing costs		(598)		(812)
Non-current debt, net of deferred financing costs and current component	$	158,025	$	164,943

As of June 30, 2021, we had a $63.6 million balance on the Term Loan, $110.6 million balance on the DDTL, and $31.5 million balance on the Revolver. Of the $0.6 million of deferred debt issuance costs allocated to the Revolver, $0.4 million is included in other non-current assets in the accompanying unaudited interim condensed consolidated balance sheets and $0.2 million is included in prepaid expenses and other current assets in the accompanying unaudited interim condensed 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	$	4,060	$	4,425	$	—
2022		5,414		8,850		—
2023		54,141		97,350		31,500
Total	$	63,615	$	110,625	$	31,500

The following table sets forth the components of total interest expense related to the Term Loan, DDTL, and Revolver recognized in the accompanying unaudited interim condensed consolidated statements of operations for the three and six months ended June 30, 2021 and 2020:

	Three Months Ended				Six Months Ended
	June 30,		June 30,		June 30,		June 30,
(in thousands)	2021		2020		2021		2020
Contractual coupon	$	2,386	$	2,206	$	4,690	$	4,099
Amortization of finance fees		176		180		352		362
Capitalized interest		(31)		(24)		(57)		(49)
	$	2,531	$	2,362	$	4,985	$	4,412