{"url_path":"/sec/nbix/8-k/2026-05-18/item-2-03","section_key":"item-2-03","section_title":"Item 2.03 Creation of a Direct Financial Obligation or an Obligation under an Off-Balance Sheet Arrangement of a Registrant.","topic":"sec","document":{"doc_type":"8-K","doc_date":"2026-05-18","source_url":"https://www.sec.gov/Archives/edgar/data/914475/0001193125-26-228013-index.html","accession_number":"0001193125-26-228013","cik":"0000914475","ticker":"NBIX","issuer_name":"NEUROCRINE BIOSCIENCES INC","edgar_url":"https://www.sec.gov/Archives/edgar/data/914475/0001193125-26-228013-index.html","primary_entity_key":"0000914475","primary_entity_name":"NEUROCRINE BIOSCIENCES INC"},"word_count":469,"has_tables":true,"body_markdown":"Item 2.03.\n\nCreation of a Direct Financial Obligation or an Obligation under an Off-Balance Sheet Arrangement of a Registrant.\n\nOn May 14, 2026 (the “Closing Date”), the Company entered into a credit agreement (the “Credit Agreement”) with JPMorgan Chase Bank, N.A., as administrative agent and collateral agent (in such capacities, the “Agent”), and the lenders party thereto. The Credit Agreement provides for a five-year, $1.0 billion senior secured revolving credit facility (the “Revolving Credit Facility”).\n\nInterest rates under the Revolving Credit Facility are variable and equal to, at the Company’s option, (i) Term SOFR (as defined in the Credit Agreement), plus a margin of 1.125% to 1.75% per annum, or (ii) an alternate base rate plus a margin of 0.125% to 0.75% per annum, in each case based on the lower of the applicable rates determined by reference to the Company’s total secured net leverage ratio and credit ratings from time to time.\n\n \n\n3\n\nThe Company will pay customary agency fees and a commitment fee based on the daily unused portion of the Revolving Credit Facility at a rate of 0.10% to 0.25% per annum based on the lower of the applicable rates determined by reference to the Company’s secured net leverage ratio and credit ratings from time to time. The Revolving Credit Facility is not subject to amortization and will mature on the fifth anniversary of the Closing Date.\n\nOn the Closing Date, the Company entered into a pledge and security agreement, pursuant to which the Company granted to the Agent, for the benefit of the lenders under the Credit Agreement, a security interest in substantially all of its assets, subject to customary exceptions and exclusions. Any material domestic subsidiaries of the Company in existence from time to time will be required to guarantee the Company’s obligations under the Credit Agreement and grant to the Agent, for the benefit of the lenders, a security interest in substantially all of their assets, subject to customary exceptions and exclusions.\n\nThe Credit Agreement contains customary representations and warranties, affirmative covenants, negative covenants and events of default. The Credit Agreement also contains financial covenants that are tested on the last day of each of the Company’s fiscal quarters. These financial covenants include (x) a maximum total net leverage ratio of 3.75:1.00 (which may, at the Company’s election, increase to 4.25:1.00 for certain periods following certain material acquisitions or investments by the Company), and (y) a minimum consolidated interest coverage ratio of 2.00:1.00. On the Closing Date, the Company made an initial borrowing of $600.0 million under the Revolving Credit Facility.\n\nThe foregoing description of the Credit Agreement does not purport to be complete and is subject to, and qualified in its entirety by reference to, the full text of the Credit Agreement, attached hereto as Exhibit 10.1 and incorporated herein by reference."}