This includes $800 million (Rs 6,676.3 crore) senior secured notes due 2029 at a coupon of 6.67%.
Biocon Biologics said the refinancing of debt will improve liquidity profile of , provide financial flexibility and opportunity to re-invest the cash into the business. Biocon Biologics has a debt of $1.2 billion taken to fund 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 09, 2024 subject to customary closing conditions.BofA Securities, Citigroup, 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 debt facility.
The proceeds of the bonds, together 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 enhance financial flexibility, fuels Biocon Biologics’ long-term growth and is core to the consolidation phase of our business,” said Shreehas Tambe, CEO and managing director, Biocon Biologics, said,
“We expect this transaction to strengthen our capital structure and allow us to re-deploy investments into the business, including advancing our differentiated pipeline of biosimilars,” Tambe added.
ET last month reported that the senior management of Biocon Biologics met with investors in Singapore and Hong Kong, has has indicated plans to raise between $900 million and $1 billion with a term exceeding five years, quoting sources.