Insulet (Nasdaq:PODD) announced that it entered into an amended credit agreement to replace existing term loans.
The automated insulin delivery technology developer entered into the agreement with Morgan Stanley Senior Funding. This agreement amended a credit agreement dated May 4, 2021. Pursuant to the agreement, the $487.5 million in term loans outstanding under the existing agreement was replaced with an equal amount of new term loans.
Insulet said in an SEC filing that its new loans have substantially similar terms to the existing ones. The one exception is with respect to the interest rate applicable to the new loans and other provisions.
The company and its revolving facility lenders amended the credit agreement to reduce the interest rate margin applicable to outstanding revolving loans. The maturity of the new term loans and revolving credit facility remains unchanged.
Insulet reduced the interest rate from 2.25% to 2% in the case of the base rate loans. In the case of SOFR loans, the rate went down from 3.25% to 3%, with a SOFR floor of 0% (down from 0.5%).
The company plans to use proceeds from the new term loans, along with cash on hand, to refinance the existing term loans. It also plans to pay accrued and unpaid interest thereon.
