Recro Announces Amendment to Athyrium Credit Facility


MALVERN, Pa., Feb. 23, 2021 (GLOBE NEWSWIRE) -- Recro Pharma, Inc. (NASD: REPH), a contract development and manufacturing organization (CDMO) dedicated to solving complex formulation and manufacturing challenges for companies developing oral solid dose drug products, today announced the signing of an amendment to its existing credit facility with funds managed by Athyrium Capital Management, LP, a leading healthcare-focused investment firm. Under terms of the amendment, among other items, the credit facility’s outstanding debt balance has been reduced from $116 million to $100 million and the interest rate governing the facility has been decreased by 1.5 percent. Furthermore, there will be no additional principal amortization during the remainder of the term of the facility, which runs through March 2023. Athyrium reduced interest and a portion of the principal under the credit agreement in exchange for $9 million of shares of the Company’s Common Stock priced at-the-market under Nasdaq rules. Through this credit facility amendment, along with other recent strategic financial activities, Recro has successfully de-levered a total of $25 million of debt from its balance sheet over the past four months.

Other material terms related to the amendment can be found in the Company’s current report on Form 8-K, which will be filed with the Securities and Exchange Commission on February 23, 2021.

“In recent months, we have worked diligently and thoughtfully to strengthen Recro in key areas to best position the company to take advantage of the rapidly expanding CDMO market. Whether it is enhancing our leadership team or fortifying the company’s balance sheet, we have worked hard to establish the optimal framework to support the end-to-end, bench-to-commercialization CDMO offerings and deep proprietary formulation, delivery and manufacturing expertise that have long been strengths for Recro,” said David Enloe, chief executive officer of Recro. “With many of these enhancements in place, we now turn our full attention to leveraging Recro’s unique competitive advantages to address the growing CDMO service demands of drug developers around the world and drive significant business growth for the company and our shareholders.”

“With this credit facility amendment, Recro has now successfully de-levered $25 million of debt in the past four months, placing the company in a much stronger financial position. This has been made possible by the excellent relationship that we have with the team at Athyrium and we want to express our gratitude to them for their partnership,” stated Ryan D. Lake, chief financial officer of Recro. “It is notable that Athyrium has elected to take an equity investment position in Recro as part of this transaction, which we believe highlights the confidence that their group has in the direction that the company is headed under our new leadership team.”

About Recro
Recro (NASD: REPH) is a revenue-generating contract development and manufacturing organization (CDMO) with capabilities from early feasibility to commercial manufacturing. With an expertise in solving complex manufacturing problems, Recro is a leading CDMO providing oral solid dosage form development, end-to-end regulatory support, clinical and commercial manufacturing, and packaging and logistics services to the global pharmaceutical market.

In addition to our experience in handling DEA controlled substances and developing and manufacturing modified release oral solid dosage forms, Recro has the expertise to deliver on our clients’ pharmaceutical development and manufacturing projects, regardless of complexity level. We do all of this in our best-in-class facilities, which total 120,000 square feet, in Gainesville, Georgia.

For more information about Recro’s CDMO solutions, visit

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