8-KEarnings & ResultsMaterial AgreementsFinancial Events+1

ALNYLAM PHARMACEUTICALS, INC. 8-K Report, Material Agreement (May 2, 2016)

Filed May 2, 2016For Securities:ALNY

Summary

Alnylam Pharmaceuticals, Inc. (ALNY) has filed an 8-K report dated May 2, 2016, announcing two significant financial developments. The company secured a total of $150 million in term loan facilities from Bank of America N.A. ($120 million) and Wells Fargo Bank, National Association ($30 million). These credit agreements are specifically intended to fund the construction of a new drug substance manufacturing facility, indicating a strategic investment in expanding operational capabilities. Additionally, the report references the release of Alnylam's financial results for the first quarter ended March 31, 2016, though the detailed results are provided in a separate press release (Exhibit 99.1).

Key Highlights

  • 1Alnylam entered into two credit agreements totaling $150 million to fund a new drug substance manufacturing facility.
  • 2The Bank of America credit facility is for $120 million, maturing on April 29, 2021.
  • 3The Wells Fargo credit facility is for $30 million, also maturing on April 29, 2021.
  • 4Proceeds from these loans are designated for working capital and general corporate purposes, specifically supporting facility build-out.
  • 5The company's U.S. subsidiary is the borrower, with Alnylam Pharmaceuticals, Inc. serving as guarantor.
  • 6Borrowings are secured by cash collateral equal to at least 100% of the outstanding principal.
  • 7The report also announces the release of Alnylam's Q1 2016 financial results.

Frequently Asked Questions

The credit agreements are intended to finance the planned build-out of Alnylam's new drug substance manufacturing facility. Proceeds can also be used for working capital and general corporate purposes.

Alnylam secured a $120 million term loan from Bank of America and a $30 million term loan from Wells Fargo. Both facilities mature on April 29, 2021. Interest rates are based on LIBOR plus 0.45 percent, and loans can be prepaid without penalty, subject to notice and LIBOR breakage costs.

The obligations under the credit agreements are secured by cash collateral held by the lenders, amounting to at least 100% of the principal amount of all outstanding term loans at any given time.

The financial results for the quarter ended March 31, 2016, were announced on May 2, 2016, and are detailed in a press release furnished as Exhibit 99.1 to this Form 8-K filing.