ADMA Biologics, Inc. has announced a significant development in its financial position, with the partial paydown of its revolving credit facility. The company has utilized cash on hand to repay $30 million of its original $72.5 million revolving credit facility with Ares Capital, resulting in a 22% reduction in its total debt to $105 million.
This move is expected to support the company's earnings growth outlook and lower its total gross debt. Adam Grossman, the president and chief executive officer of ADMA, highlighted the significance of the paydown in reducing total gross debt and the expected impact on interest expenses, enhancing earnings growth potential in the near term.
The company's confidence in sustained earnings growth and anticipated ongoing cash generation is underscored by this decision, with expectations to further optimize both debt and equity capital costs in the future.
ADMA Biologics, Inc. is a commercial biopharmaceutical company focused on manufacturing, marketing, and developing specialty biologics for the treatment of immunodeficient patients at risk for infection and others at risk for certain infectious diseases. The company currently markets three FDA-approved plasma-derived biologics and operates as an FDA-approved source plasma collector in the U.S.
This financial development positions the company for potential future growth and underscores its commitment to managing its debt and capital structure effectively. As a result of these announcements, the company's shares have moved 1.7% on the market, and are now trading at a price of $17.57. If you want to know more, read the company's complete 8-K report here.
