This includes senior secured bonds of $800 million (Rs 6,676.3 crore) due 2029 and a coupon of 6.67%.
Biocon Biologics said the debt refinancing will improve liquidity profile, provide financial flexibility and the opportunity to reinvest cash in the business. Biocon Biologics has debt of $1.2 billion to finance the acquisition of viatris Inc.’s biosimilars business
The bonds will be issued by Biocon Biologics Global plc, which is a wholly owned subsidiary of BBL, and will be backed by a strong security package, the company said.
The bonds are expected to be rated BB by both S&P and Fitch and will be listed on the Singapore Stock Exchange.
The transaction is expected to settle on October 9, 2024 subject to customary closing conditions.BofA ValuesCitigroup, HSBC and Standard Chartered Bank acted as joint global coordinators, lead managers and bookrunners and BNP PARIBAS and Mizuho acted as joint lead managers and bookrunners. Additionally, Biocon Biologics has entered into a commitment agreement for a new syndicated credit facility.
Proceeds from the notes, along with the new syndicated debt facility being raised, will be used to substantially refinance existing debt of $1.1 billion, the company said.
“This strategic refinancing underscores our commitment to enhancing financial flexibility, drives the long-term growth of Biocon Biologics and is critical to the consolidation phase of our business,” said Shreehas Tambe, CEO and CEO of Biocon Biologics,
“We hope this transaction strengthens our capital structure and allow us to redeploy investments in the business, including advancing our differentiated portfolio of biosimilars,” Tambe added.
Last month, ET reported that Biocon Biologics’ top management met investors in Singapore and Hong Kong and has indicated plans to raise between $900 million and $1 billion over five years, citing sources.
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