Kendle enters into new $35M secured revolving credit facility with JPMorgan Chase Bank N.A.

Mar 18 2010

Kendle (Nasdaq: KNDL), a leading, global full-service clinical research organization, today announced that it has entered into a new $35 million secured revolving credit facility as of March 15, 2010 with JPMorgan Chase Bank N.A., as administrative agent, which replaces the Company's previous revolving credit facility. The new facility contains provisions allowing the Company to request an increase of up to $15 million in capacity, subject to the consent of the current lender or additional lenders.  The new revolving facility matures on January 15, 2012 and is automatically extended to March 31, 2015 if certain conditions are met related to the Company's convertible notes.  

Commenting on the transaction, Keith Cheesman, Senior Vice President and Chief Financial Officer said, "We are very pleased with this new facility and with having JPMorgan Chase serve as our agent.  This new facility offers more flexible terms and conditions, together with a duration and a capacity, all of which will better position us to execute against our long-term strategic plans."

Under the terms of this new facility, the Company may borrow in U.S. dollars or other globally-traded currencies, including the Euro and the Pound Sterling. The new credit agreement contains various affirmative and negative covenants including limitations on capital expenditures, investments, indebtedness, acquisitions and asset sales outside the ordinary course of business.  The new agreement also contains various financial covenants including a total leverage ratio, a senior leverage ratio and an interest coverage ratio.  Additional details about the new credit facility are available in the Company's most recently filed Annual Report on Form 10-K.