Exhibit 10.1

 

EXECUTION VERSION

 

AMENDMENT NO. 2 TO

AMENDED AND RESTATED CREDIT AGREEMENT

 

AMENDMENT NO. 2 TO AMENDED AND RESTATED CREDIT AGREEMENT (this “Amendment”)
dated as of February 14, 2013 is entered into by and among Alkermes, Inc., a
corporation organized under the laws of the Commonwealth of Pennsylvania (the
“Borrower”), Alkermes plc, a company incorporated under the laws of the Republic
of Ireland (“Holdings”), Alkermes Pharma Ireland Limited, a private limited
company organized under the laws of the Republic of Ireland (“Intermediate
Holdco”) and each of the Guarantors listed on the signature pages hereto, Morgan
Stanley Senior Funding, Inc., as administrative agent (in such capacity, the
“Administrative Agent”) and as collateral agent (in such capacity, the
“Collateral Agent”), and the undersigned lenders (the “Term Lenders”). 
Capitalized terms not otherwise defined in this Amendment have the same meanings
as specified in the Credit Agreement (as defined below).

 

PRELIMINARY STATEMENTS:

 

(1)       The Borrower, Holdings, Intermediate Holdco, the Guarantors party
thereto, the Administrative Agent and Collateral Agent, Morgan Stanley Senior
Funding, Inc., Citigroup Global Markets, Inc. and JPMorgan Chase Bank, N.A., as
co-syndication agents and the financial institutions from time to time party
thereto as term lenders entered into that certain Amended and Restated Credit
Agreement, initially dated as of September 16, 2011 and amended and restated on
September 25, 2012 (the “Credit Agreement”);

 

(2)       The Borrower, Holdings, the other Loan Parties party thereto, the
undersigned Term Lenders and the Administrative Agent have agreed to amend the
Credit Agreement as hereinafter set forth;

 

NOW, THEREFORE, in consideration of the premises and for other good and valuable
consideration (the receipt and sufficiency of which are hereby acknowledged),
the parties hereto hereby agree as follows:

 

SECTION 1.   Amendments to Credit Agreement.

 

The Credit Agreement is, effective as of the date hereof and subject to the
satisfaction of the conditions precedent set forth in Section 3, hereby amended
as follows:

 

(a)  Section 1.1 of the Credit Agreement shall be amended by adding the
following new definitions thereto in proper alphabetical order:

 

“ABR Floor”: with respect to 2019 Term Loans, 1.75% and with respect to 2016
Term Loans, 1%.

 

Alkermes — Amendment & Restatement

 

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“LIBOR Floor”: with respect to 2019 Term Loans, 0.75% and with respect to 2016
Term Loans, 0%.

 

“Second Amendment”: that certain Amendment No. 2 to Amended and Restated Credit
Agreement, dated as of February 14, 2013, among Borrower, Holdings, Intermediate
Holdco, the Guarantors party thereto, the Administrative Agent and certain Term
Lenders party thereto.

 

“Second Amendment Effective Date”: the date on which all of the conditions
contained in Section 3 of the Second Amendment have been satisfied or waived by
the Administrative Agent.

 

(b) The definition of “Applicable Margin” appearing in Section 1.1 of the Credit

 

Agreement is hereby amended by:

 

(i)  deleting “3.00” and “2.00%” appearing in clause (a) thereof and
substituting in lieu therefor “2.75%” and “1.75%” respectively; and

 

(ii) deleting “3.50%” and 2.50%” appearing in clause (b) thereof and
substituting in lieu therefor “2.75%” and “1.75%” respectively.

 

(c)  The definition of “ABR” appearing in Section 1.1 of the Credit Agreement is
hereby amended by deleting “2.0%” appearing in clause (d) thereof and
substituting in lieu therefor “the ABR Floor”.

 

(d) The definition of “LIBOR Rate” appearing in Section 1.1 of the Credit
Agreement is hereby amended by deleting “1.00% (the “LIBOR Floor”)” appearing in
clause (a) thereof and substituting in lieu therefor “the LIBOR Floor”.

 

(e)  Section 3.2(f) of the Credit Agreement is hereby amended by deleting the
phrase “the first anniversary of the Restatement Effective Date” appearing
therein and substituting in lieu therefor the phrase “the date that occurs six
months following the Second Amendment Effective Date.”

 

SECTION 2.   Reference to and Effect on the Loan Documents.

 

(a)  On and after the Effective Date, each reference in the Credit Agreement to
“this Agreement”, “hereunder”, “hereof” or words of like import referring to the
Credit Agreement, and each reference in the other Loan Documents to “the Credit
Agreement”, “the First-Lien Credit Agreement,” “the Amended and Restated Credit
Agreement,” “thereunder”, “thereof” or words of like import referring to the
Credit Agreement, shall mean and be a reference to the Credit Agreement as
amended by this Amendment.

 

(b) The Credit Agreement, as specifically amended by this Amendment, and the
other Loan Documents are, and shall continue to be, in full force and effect,
and are hereby in all respects ratified and confirmed.

 

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(c)  Except as expressly provided herein, the execution, delivery and
effectiveness of this Amendment shall not operate as a waiver of any right,
power or remedy of any Lender or the Administrative Agent under the Credit
Agreement or any other Loan Document, nor shall it constitute a waiver of any
provision of the Credit Agreement or any Loan Document.

 

(d) Each of the Guarantors and Holdings hereby consents to the amendments to the
Credit Agreement effected hereby, and hereby confirms, acknowledges and agrees
that, (a) notwithstanding the effectiveness of this Amendment, the obligations
of such Guarantor contained in any of the Loan Documents to which it is a party
are, and shall remain, in full force and effect and are hereby ratified and
confirmed in all respects, except that, on and after the Effective Date (as
defined below), each reference in the Loan Documents to “the Credit Agreement”,
“the First-Lien Credit Agreement,” “the Amended and Restated Credit Agreement,”
“thereunder”, “thereof” or words of like import shall mean and be a reference to
the Credit Agreement, as amended by this Amendment, (b) the pledge and security
interest in the Collateral granted by it pursuant to the Security Documents to
which it is a party shall continue in full force and effect and (c) such pledge
and security interest in the Collateral granted by it pursuant to such Security
Documents shall continue to secure the Obligations purported to be secured
thereby, as amended or otherwise affected hereby.

 

SECTION 3.   Conditions of Effectiveness.     This Amendment shall become
effective as of the date (the “Effective Date”) on which each of the following
conditions shall have been satisfied (or waived):

 

(a)       Executed Counterparts of Amendment.   The Administrative Agent shall
have received from (i) the existing Term Lenders under the Credit Agreement
constituting Required Lenders, (ii) the Administrative Agent, (iii) the Loan
Parties party hereto, and (iv) any Increasing Lenders (defined below) whose
aggregate commitment exceeds the aggregate commitment of such Increasing Lenders
(if any) immediately prior to the Effective Date by an amount equal to the
aggregate commitment of Non-Consenting Lenders with respect to this Amendment,
executed counterparts of this Amendment or written evidence reasonably
satisfactory to the Administrative Agent that such party has executed this
Amendment on, or prior to, 12:00 p.m., New York City time on February 12, 2013
(the “Consent Deadline”);

 

(b)       Expenses; Fees.  The Borrower and its Subsidiaries shall have paid all
fees due and payable on the Effective Date.  The Administrative Agent shall have
received all reasonable and documented out-of-pocket costs and expenses,
invoices for which have been submitted prior to the Effective Date, required to
be paid (including without limitation reasonable fees and disbursements of
counsel) under the Credit Agreement on or prior to the Effective Date;

 

(c)       No Default.  As of the Effective Date, no event shall have occurred
and be continuing that would constitute a Default or Event of Default under the
Credit Agreement;

 

(d)       Representations and Warranties. Each of the representations and
warranties made by any Loan Party in the Credit Agreement and the other Loan
Documents shall be true and correct in all material respects (or in all respects
where qualified by materiality or Material Adverse Effect) on and as of the
Effective Date as if made on and as of such date (except (i) to the extent made
as of a specific date, in which case such representation and warranty shall be
true and

 

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correct in all material respects (or in all respects where qualified by
materiality or Material Adverse Effect) on and as of such specific date and
(ii) in the case of the representations and warranties made pursuant to Sections
4.15, 4.19 and 4.24 of the Credit Agreement (including in connection with the
representations and warranties made pursuant to Section 4.1 of the Guarantee and
Collateral Agreement) and Sections 4.5, 4.7, 4.10, 4.11 and 4.12 of the
Guarantee and Collateral Agreement, such representations and warranties shall be
true and correct in all material respects (or in all respects where qualified by
materiality or Material Adverse Effect) on and as of the Restatement Effective
Date.

 

(e)       Call Protection. The Borrower shall have paid to the Administrative
Agent for the ratable account of the Lenders (prior to giving effect to this
Amendment) an amount equal to the prepayment premium required to be paid by the
Borrower pursuant to Section 3.2(f) of the Credit Agreement (prior to giving
effect to this Amendment).

 

SECTION 4.                            Increasing Lenders. If any Lender declines
or fails to consent to this Amendment by returning an executed counterpart of
this Amendment to the Administrative Agent prior to the Consent Deadline, then
pursuant to and in compliance with the terms of Section 3.13 and Section 10.1 of
the Credit Agreement, such Non-Consenting Lender shall be replaced and its
commitments and/or obligations purchased and assumed by either a new lender (a
“New Lender”) or an existing Lender which is willing to increase its Term Loans
as set forth on such Lender’s signature page hereto (an “Existing Lender” and,
together with any New Lender, the “Increasing Lenders”) upon execution of this
Amendment (which will also be deemed to be the execution of an Assignment and
Assumption Agreement substantially in the form of Exhibit A hereto).

 

SECTION 5.                            Costs and Expenses. The Borrower agrees
that all reasonable out-of-pocket expenses incurred by the Administrative Agent
in connection with the preparation, execution, delivery and administration,
modification and amendment of this Amendment and the other instruments and
documents to be delivered hereunder or in connection herewith (including,
without limitation, the reasonable fees, charges and disbursements of Shearman &
Sterling LLP, counsel for the Administrative Agent), are expenses that the
Borrower are required to pay or reimburse pursuant to Section 10.5 of the Credit
Agreement.

 

SECTION 6.                            Miscellaneous.

 

(a)  Execution in Counterpart. This Amendment may be executed in any number of
counterparts and by different parties hereto in separate counterparts, each of
which when so executed shall be deemed to be an original and all of which taken
together shall constitute but one and the same agreement.  Delivery of an
executed counterpart of a signature page to this Amendment by telecopier or
other electronic means shall be effective as delivery of a manually executed
counterpart of this Amendment.

 

(b) Binding Effect. This Amendment shall be binding upon and inure to the
benefit of the parties hereto and their respective successors and assigns.

 

(c)  Headings.  The headings listed herein are for convenience only and do not
constitute matters to be construed in interpreting this Amendment.

 

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(d) Waiver & Modification.  No provision of this Amendment may be modified,
altered or otherwise amended, except by an instrument in writing executed by
each of the parties hereto.

 

(e)  GOVERNING LAW.  THIS AMENDMENT SHALL BE GOVERNED BY, AND CONSTRUED IN
ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW YORK.

 

(f)  WAIVER OF RIGHT OF TRIAL BY JURY.  EACH PARTY TO THIS AMENDMENT HEREBY
EXPRESSLY WAIVES ANY RIGHT TO TRIAL BY JURY OF ANY CLAIM, DEMAND, ACTION OR
CAUSE OF ACTION ARISING UNDER THIS AMENDMENT, OR IN ANY WAY CONNECTED WITH OR
RELATED OR INCIDENTAL TO THE DEALINGS OF THE PARTIES HERETO OR ANY OF THEM WITH
RESPECT TO THE CREDIT AGREEMENT AS AMENDED HEREBY, OR THE TRANSACTIONS RELATED
THERETO, IN EACH CASE WHETHER NOW EXISTING OR HEREAFTER ARISING, AND WHETHER
FOUNDED IN CONTRACT OR TORT OR OTHERWISE; AND EACH PARTY HEREBY AGREES AND
CONSENTS THAT ANY SUCH CLAIM, DEMAND, ACTION OR CAUSE OF ACTION SHALL BE DECIDED
BY COURT TRIAL WITHOUT A JURY, AND THAT ANY PARTY TO THIS AGREEMENT MAY FILE AN
ORIGINAL COUNTERPART OR A COPY OF THIS SECTION WITH ANY COURT AS WRITTEN
EVIDENCE OF THE CONSENT OF THE SIGNATORIES HERETO TO THE WAIVER OF THEIR RIGHT
TO TRIAL BY JURY.

 

[Remainder of Page Intentionally Left Blank]

 

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IN WITNESS WHEREOF, the parties hereto have caused this Amendment to be executed
by their respective authorized officers as of the date first above written.

 

 

 

BORROWER:

 

 

 

ALKERMES, INC., as Borrower

 

 

 

 

 

 

 

By:

/s/ Michael J. Landine

 

 

Name:  Michael J. Landine

 

 

Title:    Senior Vice President,

 

 

Corporate Development

 

Alkermes

February 2013 Amendment

 

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GIVEN under the common seal of

 

ALKERMES PLC

 

and DELIVERED as a DEED

 

 

 

 

 

 

 

 

/s/ Shane Cooke

 

 

President

 

 

 

Alkermes

February 2013 Amendment

 

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GUARANTORS:

 

 

 

ALKERMES US HOLDINGS, INC., as a Guarantor

 

 

 

 

By:

/s/ Michael J. Landine

 

 

Name: Michael J. Landine

 

 

Title:   President

 

 

 

 

EAGLE HOLDINGS USA, INC., as a Guarantor

 

 

 

 

By:

/s/ Michael J. Landine

 

 

Name: Michael J. Landine

 

 

Title:   President

 

 

 

 

ALKERMES GAINESVILLE LLC, as a Guarantor

 

 

 

 

By:

/s/ Michael J. Landine

 

 

Name: Michael J. Landine

 

 

Title:   Manager

 

 

 

 

ALKERMES CONTROLLED THERAPEUTICS, INC., as a Guarantor

 

 

 

 

By:

/s/ Michael J. Landine

 

 

Name: Michael J. Landine

 

 

Title:   Vice President

 

Alkermes

February 2013 Amendment

 

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GIVEN under the common seal of

 

 

 

ALKERMES PHARMA IRELAND LIMITED

 

 

 

and DELIVERED as a DEED

 

 

 

 

 

 

 

 

 

 

 

/s/ Shane Cooke

 

 

 

Director

 

 

 

 

 

 

 

/s/ Tom Riordan

 

 

 

Assistant Secretary

 

 

 

 

Alkermes

February 2013 Amendment

 

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GIVEN under the common seal of

 

 

 

ALKERMES FINANCE IRELAND LIMITED

 

 

 

and DELIVERED as a DEED

 

 

 

 

 

 

 

 

 

 

 

/s/ Shane Cooke

 

 

 

Director

 

 

 

 

 

 

 

/s/ Tom Riordan

 

 

 

Assistant Secretary

 

 

 

 

Alkermes

February 2013 Amendment

 

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GIVEN under the common seal of

 

 

 

ALKERMES FINANCE IRELAND (N0 2) LIMITED

 

 

 

and DELIVERED as a DEED

 

 

 

 

 

 

 

 

 

 

 

/s/ Shane Cooke

 

 

 

Director

 

 

 

 

 

 

 

/s/ Tom Riordan

 

 

 

Assistant Secretary

 

 

 

 

Alkermes

February 2013 Amendment

 

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GIVEN under the common seal of

 

 

 

ALKERMES SCIENCE ONE LIMITED

 

 

 

and DELIVERED as a DEED

 

 

 

 

 

 

 

 

 

 

 

/s/ Shane Cooke

 

 

 

Director

 

 

 

 

 

 

 

/s/ Tom Riordan

 

 

 

Assistant Secretary

 

 

 

 

Alkermes

February 2013 Amendment

 

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ALKERMES FINANCE S.a.r.l

 

 

 

 

 

 

 

 

 

 

By:

/s/ Thomas Riordan

 

 

 

 

 

 

Title:

class B manager

 

Alkermes

February 2013 Amendment

 

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MORGAN STANLEY SENIOR

 

 

FUNDING, INC.,

 

 

as Administrative Agent and Collateral

 

 

Agent and a Lender

 

 

 

 

 

 

 

 

 

 

By:

/s/ Nathan Speicher

 

 

 

Name:    Nathan Speicher

 

 

 

Title:      Authorized Signatory

 

Alkermes

February 2013 Amendment

 

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Lender Signature Pages on File with the

Administrative Agent

 

Alkermes

February 2013 Amendment

 

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