Grifols Bondholders Approve Singapore’s Billion-Dollar Investment

Almost one billion dollars from Singapore’s sovereign wealth fund will find its way into the coffers of the pharmaceutical company Grifols. The vast majority of the Catalan company’s bondholders and creditors have given their support to the operation, which will serve to reduce the firm’s debt.

At the beginning of the year, the company’s net financial debt stood at $7.3 billion (€6.2 billion) and the net financial debt to EBITDA ratio at 5.1x as a result of the acquisitions of plasma centers from BPL and Kedrion and the Gigagen transaction.

Read more about the investment in Grifols and find the latest financial news in the world with the Born2Invets mobile app.

Despite the significant financial injection, Grifols will continue to control all aspects related to the management of Biomat

The company has assured that 87.93% of bondholders of its secured bonds, 81.01% of unsecured bonds, the required 93.82% of underwriters of its syndicated credit facility, and the European Investment Bank consented to the corporate reorganization that will accommodate GIC, Singapore’s sovereign wealth fund. “The high percentage of consents obtained demonstrates the high degree of confidence of the main bond and debt holders in our long-term, sustainable business model, as well as in our commitment to reducing our leverage ratios, while we continue to value and take advantage of value-added opportunities, as evidenced by our strategic agreement with GIC,” explained the Catalan pharmaceutical company’s CFO, Alfredo Arroyo.

The investment from the Asian country will go to Biomat, the Grifols subsidiary responsible for plasma collection at 296 centers in the United States. The Singapore fund will control a total of 10 Class B ordinary shares in Biomat and nine Class B ordinary shares in a newly created sub-holding company. This will represent, directly and indirectly, a total of 23.8% of Biomat’s share capital.

Despite the significant financial injection, Grifols will continue to control all aspects related to the management of Biomat and the operation of the centers. All the plasma collected at the 296 centers will continue to be supplied to Grifols for the production of plasma medicines under a long-term contract.

The Ibex-listed pharmaceutical company’s business continues to be based on plasma-based drugs. However, at the last shareholders’ meeting, the company began to unveil plans for other therapeutic areas and new drugs to diversify its business and reduce its dependence on donations. One of the spurs for this decision has been the pandemic, where confinements have weighed down the business model which until now has been Grifols’ flagship.

__

(Featured image by cegoh via Pixabay)

DISCLAIMER: This article was written by a third party contributor and does not reflect the opinion of Born2Invest, its management, staff or its associates. Please review our disclaimer for more information.

This article may include forward-looking statements. These forward-looking statements generally are identified by the words “believe,” “project,” “estimate,” “become,” “plan,” “will,” and similar expressions. These forward-looking statements involve known and unknown risks as well as uncertainties, including those discussed in the following cautionary statements and elsewhere in this article and on this site. Although the Company may believe that its expectations are based on reasonable assumptions, the actual results that the Company may achieve may differ materially from any forward-looking statements, which reflect the opinions of the management of the Company only as of the date hereof. Additionally, please make sure to read these important disclosures.

First published in elEconomista.es, a third-party contributor translated and adapted the article from the original. In case of discrepancy, the original will prevail.

Although we made reasonable efforts to provide accurate translations, some parts may be incorrect. Born2Invest assumes no responsibility for errors, omissions or ambiguities in the translations provided on this website. Any person or entity relying on translated content does so at their own risk. Born2Invest is not responsible for losses caused by such reliance on the accuracy or reliability of translated information. If you wish to report an error or inaccuracy in the translation, we encourage you to contact us.