Charles River Laboratories International, Inc. Amends and Restates Credit Agreement

On December 13, 2024, Charles River Laboratories International, Inc. filed a Form 8-K with the Securities and Exchange Commission, announcing the amendment and restatement of its credit agreement. The company, along with certain financial institutions and JPMorgan Chase Bank, N.A., as administrative agent, took this action, naming it the “Tenth Amended and Restated Credit Agreement.”

The key highlights of this amended agreement include an extension of the maturity date for the facilities, decreasing the aggregate revolving commitments from $3 billion to $2 billion. Furthermore, the revised agreement now incorporates Charles River Laboratories, Inc. (“CRL”) as a direct subsidiary borrower, along with making amendments to various covenants and terms.

In this amended agreement, Charles River’s obligations are guaranteed by CRL and are secured by a substantial portion of the assets of both entities. This collateral includes a pledge of 100% of the capital stock of CRL and any future significant domestic subsidiaries. The credit agreement allows for financing of up to approximately $2 billion through a revolving credit facility, maturing on December 13, 2029.

Under this agreement, Charles River will have the flexibility to draw funds in U.S. dollars, euros, and sterling, with varying interest rates based on different currencies. The agreement also includes financial covenants relating to interest coverage ratio tests, leverage ratio tests, and negative covenants that impose restrictions on additional indebtedness, liens, investments, mergers, and other financial transactions involving the company and its subsidiaries.

Moreover, the Tenth Amended and Restated Credit Agreement consists of customary representations and warranties, affirmative covenants, and events of default. The full details of the amended agreement have been included as Exhibit 10.1 in the filing.

These refinements to the credit agreement mark Charles River Laboratories’ strategic move to optimize its financial arrangements and enhance its operational capabilities within set financial boundaries. This action is aimed at fortifying the company’s financial position and unlocking growth opportunities as it moves forward.

For deeper insights into the company’s financial obligations and its path forward, interested parties can refer to the complete filing on the Securities and Exchange Commission’s website or through Charles River Laboratories’ investor relations portal.

This article was generated by an automated content engine and was reviewed by a human editor prior to publication. For additional information, read Charles River Laboratories International’s 8K filing here.

About Charles River Laboratories International

Charles River Laboratories International, Inc provides drug discovery, non-clinical development, and safety testing services in the United States, Europe, Canada, the Asia Pacific, and internationally. It operates through three segments: Research Models and Services (RMS), Discovery and Safety Assessment (DSA), and Manufacturing Solutions (Manufacturing).