Certara amends credit agreement to reduce borrowing costs

Certara, Inc. (NASDAQ:CERT), a $2 billion market cap company, announced Thursday that it has entered into a Sixth Amendment to its existing credit agreement, originally dated August 15, 2017. According to a statement released through a SEC filing, the amendment was executed by Certara USA, Inc., an indirect subsidiary, and several other wholly owned subsidiaries, along with Bank of America, N.A., acting as administrative and collateral agent. InvestingPro data shows the company operates with a moderate debt level and maintains strong liquidity, with current assets more than twice its short-term obligations.

The amendment introduces a reduction in the applicable interest rate for the term loans under the credit agreement. The company stated that this change is expected to lower its cost of borrowing and result in interest expense savings compared to the previous terms. This move aligns with the company’s efficient capital management strategy, reflected in its healthy financial metrics. According to InvestingPro’s comprehensive analysis, Certara maintains a solid financial health score of "GOOD" and has demonstrated robust revenue growth of nearly 12% over the last twelve months.

Under the revised agreement, the new replacement term loans will bear interest at an annual rate chosen by the borrowers: either the Term SOFR rate, with a floor of 0.00% plus a margin of 2.75%, or an Alternate Base Rate (ABR) with a floor of 1.00% plus a margin of 1.75%. The ABR is defined as the highest of the prime rate, the federal funds effective rate plus 0.50%, or the Term SOFR rate plus 1.00%.

The replacement term loans were fully funded on Thursday and were used to refinance the existing term loans previously outstanding under the credit agreement. All other key terms, including those related to guarantees, collateral, mandatory prepayments, and covenants, remain substantially similar to those in effect prior to the amendment.

This information is based on a statement issued by the company in a filing with the Securities and Exchange Commission. For deeper insights into Certara’s financial position and growth prospects, including additional ProTips and detailed metrics, investors can access the complete analysis through InvestingPro’s comprehensive research report, part of its coverage of over 1,400 US equities.

In other recent news, Certara Inc . reported its second-quarter 2025 earnings, which showed a mixed financial performance. The company’s earnings per share (EPS) did not meet analysts’ expectations, although its revenue slightly surpassed forecasts. Additionally, Leerink Partners adjusted its price target for Certara, reducing it to $11.50 from $13.00, citing valuation concerns. Despite this adjustment, Leerink Partners maintained an Outperform rating on Certara’s stock. These developments indicate ongoing scrutiny and evaluation of Certara’s financial health and market position by industry analysts. Investors may find this information useful as they assess the company’s current and future prospects.

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