Bulletin: Antigua Bidco Ltd's Term Loan B Repricing And Add-On Won't Materially Affect Leverage

PARIS (S&P Global Ratings) Feb. 18, 2021--S&P Global Ratings said today that Antigua Bidco Ltd's (B-/Stable/--) repricing of its £530 million term loan B (€614 million), and add-on of £50 million (€58 million) will not meaningfully affect leverage, given we understand the proceeds will be used to repay outstanding revolving credit facility drawings. We continue to forecast the U.K.-based off-patent drugs aggregator's S&P Global Ratings-adjusted debt to EBITDA and EBITDA interest coverage at 5x-6x and 4x-5x, respectively, in fiscal 2021 (ending March 31, 2021). We understand the group anticipates the interest rate on the debt will decline from 475-500 basis points (bps) to 425-450 bps following the repricing, benefiting from favourable market conditions. This would lead an £2 million-£4 million

...February 18, 2021 PARIS (S&P Global Ratings) Feb. 18, 2021--S&P Global Ratings said today that Antigua Bidco Ltd's (B-/Stable/--) repricing of its ú530 million term loan B (614 million), and add-on of ú50 million (58 million) will not meaningfully affect leverage, given we understand the proceeds will be used to repay outstanding revolving credit facility drawings. We continue to forecast the U.K.-based off-patent drugs aggregator's S&P Global Ratings-adjusted debt to EBITDA and EBITDA interest coverage at 5x-6x and 4x-5x, respectively, in fiscal 2021 (ending March 31, 2021). We understand the group anticipates the interest rate on the debt will decline from 475-500 basis points (bps) to 425-450 bps following the repricing, benefiting from favourable market conditions. This would lead an ú2 million-ú4 million savings on yearly interest expense. Minor modifications have been made to the transaction documentation, including changes to reporting frequency (now quarterly versus monthly) and...

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