TELIGENT, INC. (NASDAQ:TLGT) Files An 8-K Entry into a Material Definitive Agreement
On February 8, 2019, Teligent, Inc. (the “Company”) entered into Amendment No. 1 to Second Lien Credit Agreement (the “Second Lien Credit Agreement Amendment”), amending that certain Second Lien Credit Agreement, dated December 13, 2018, by and among the Company, as the borrower, certain subsidiaries of the Company, as guarantors, the lenders from time to time party thereto, and Ares Capital Corporation, as administrative agent and collateral agent for the lenders (as amended by the Second Lien Credit Agreement Amendment, the “Second Lien Credit Agreement”).
to the Second Lien Credit Agreement Amendment, for each fiscal year beginning with the year ending December 31, 2020, the Company will be required to prepay the outstanding debt under the Second Lien Credit Agreement in an amount equal to (a) 50% of the Company’s consolidated excess cash flow (if any) for such fiscal year minus (b) all voluntary prepayments of such debt made by the Company during such fiscal year (the “Annual Excess Cash Flow Sweep”). For purposes of the Annual Excess Cash Flow Sweep, “consolidated excess cash flow” for each applicable fiscal year will be calculated as the consolidated adjusted EBITDA (as calculated under the Second Lien Credit Agreement) for such fiscal year as reduced by certain deductions consisting of (i) consolidated interest expense (as calculated under the Second Lien Credit Agreement) paid in cash in such fiscal year; (ii) scheduled principal payments made in cash in such fiscal year and not otherwise financed by indebtedness (other than loans extended by the lenders under the Company’s current senior secured first lien credit facility (the “First Lien Lenders”)); (iii) income taxes paid in cash in such fiscal year; (iv) consolidated capital expenditures made in cash in such calendar year and not otherwise financed by indebtedness (other than by loans extended by the First Lien Lenders); (v) certain other costs, expenses and charges taken into account in the calculation of consolidated adjusted EBITDA; (vi) amounts paid in such fiscal year in respect of purchase price for permitted acquisitions and not otherwise financed by indebtedness (other than loans extended by the First Lien Lenders) and (vii) increases (or plus decreases) in consolidated working capital (as calculated under the Second Lien Credit Agreement). The principal reductions in the loans resulting from any payments made by the Company to the Annual Excess Cash Flow Sweep will not trigger any prepayment premium or penalty.
About TELIGENT, INC. (NASDAQ:TLGT)
Teligent, Inc., formerly IGI Laboratories, Inc., is a specialty generic pharmaceutical company. The Company markets and sells generic injectable pharmaceutical products under its own label in the United States and Canada. It provides development, formulation and manufacturing services to the pharmaceutical, over-the-counter (OTC) and cosmetic industries. It has two platforms: developing, manufacturing and marketing a portfolio of generic pharmaceutical products under its own label in topical, injectable, complex and ophthalmic dosage forms, and managing its current contract manufacturing and formulation services business. Its pipeline includes over 30 Abbreviated New Drug Applications filed with the United States Food and Drug Administration for additional pharmaceutical products. It holds additional over 40 product candidates at various stages of its development pipeline, 10 of which are on stability testing.