Bulletin: Pharmanovia's Proposed Add-On To Its Term Loan B Won't Materially Affect Leverage

This report does not constitute a rating action. PARIS (S&P Global Ratings) April 17, 2023--S&P Global Ratings said today that Pharmanovia Bidco Ltd.'s (B/Stable/--) proposed term loan B add-on of €150 million (around £132 million) will not materially affect its leverage. The company plans to use most of the proceeds to repay €105 million (around £95 million) of the withdrawn revolving credit facility (RCF); the remaining amount will stay on the balance sheet. We still expect S&P Global Ratings-adjusted debt to EBITDA to be slightly above 5x in the fiscal year ending March 31, 2023, about 5.5x-5.7x in fiscal 2024, and close to 5.0x-5.5x in fiscal 2025. We understand that the group used the RCF drawdown and its own cash

...PARIS (S&P Global Ratings) April 17, 2023--S&P Global Ratings said today that Pharmanovia Bidco Ltd.'s (B/Stable/--) proposed term loan B add-on of 150 million (around ú132 million) will not materially affect its leverage. The company plans to use most of the proceeds to repay 105 million (around ú95 million) of the withdrawn revolving credit facility (RCF); the remaining amount will stay on the balance sheet. We still expect S&P Global Ratings-adjusted debt to EBITDA to be slightly above 5x in the fiscal year ending March 31, 2023, about 5.5x-5.7x in fiscal 2024, and close to 5.0x-5.5x in fiscal 2025. We understand that the group used the RCF drawdown and its own cash to enter an exclusive licensing agreement that closed in February 2023 with Axsome Therapeutics, to commercialize and further develop a medication called Sunosi (solriamfetol). We estimate that it paid a consideration of 62 million (ú54 million) upfront, and that potential payments linked to sales-based and other milestones...

Bulletin