| Item 1.01 | Entry into a Material Definitive Agreement. |
On October 24, 2022, Baudax Bio, Inc. (the “Company”) entered into that certain Amendment No. 2 to Credit Agreement (the “Amendment”) by and among the Company, Baudax Bio N.A. LLC (“Baudax LLC”), Baudax Bio Limited, Wilmington Trust, National Association, solely in its capacity as administrative and collateral agent (the “Agent”) and the lenders party thereto (the “Lenders”). The Amendment amends that certain Credit Agreement, dated as of May 29, 2020, by and among the Company, the Agent, and the Lenders (as amended, the “Credit Agreement”), as amended.
Pursuant to the terms of the Amendment, the Credit Agreement is amended such that the Company must repay the principal thereunder (i) on the first business day of each month (each, an “Interest Payment Date”) until the Interest Payment Date on December 1, 2022, in equal monthly installments of principal based on an amortization schedule of 36 months, (ii) an additional payment of principal in the amount of $300,000 prior to December 31, 2022 and (iii) commencing on the Interest Payment Date on January 2, 2023 and on each Interest Payment Date thereafter until the obligations have been repaid in full, the principal amount of $500,000.
In addition, the Amendment decreases the minimum cash covenant the Company is required to maintain under the Credit Agreement (the “Minimum Liquidity Covenant”) to (i) $3.0 million for the period beginning on October 1, 2022, and ending on November 30, 2022, (ii) $4.5 million for the period beginning on December 1, 2022, and ending on February 28, 2023, and (iii) $4.0 million from and after March 1, 2023. Further, the Company has agreed that prior to December 31, 2022, it shall not, without the prior written consent of the Lenders, make or permit any payment under either (i) the Purchase and Sale Agreement, dated as of March 7, 2015, as amended, by and among the Company (as successor to Recro Pharma, Inc.), Alkermes Pharma Ireland Limited, Daravita Limited and Eagle Holdings USA, Inc.; or (ii) the Asset Transfer and License Agreement, dated as of April 10, 2015, as amended, by and between Alkermes Pharma Ireland Limited and Recro Gainesville LLC (as successor by merger to DV Technology LLC), as partially assigned to the Company pursuant to that certain Partial Assignment, Assumption and Bifurcation Agreement, among Alkermes Pharma Ireland Limited, Recro Gainesville LLC and the Company. In consideration for the Amendment, the Company agreed to pay the Agent an amendment fee of $5,000 and the Lender an amendment fee of $200,000.
The foregoing summary of the Amendment does not purport to be complete and is qualified in its entirety by reference to the Amendment, a copy of which is filed as Exhibit 10.1 hereto and incorporated herein by reference.
| Item 2.03 | Creation of a Direct Financial Obligation or an Obligation under an Off-Balance Sheet Arrangement of a Registrant. |
The disclosure set forth in Item 1.01 of the Current Report on Form 8-K is hereby incorporated by reference.
| Item 9.01 | Financial Statements and Exhibits. |
(d) Exhibits
The following exhibits are being filed herewith:
