Grünenthal GmbH: Grünenthal secures long-term financing for growth strategy

DGAP-News: Grünenthal GmbH / Key word(s): Bond/Issue of Debt
14.07.2021 / 14:07
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Grünenthal secures long-term financing for growth strategy

- Grünenthal successfully increases existing bond financing by €300 million to a total sum of €950 million.

- The company gains additional financial flexibility to pursue targeted investments to further pursue its growth strategy.

Aachen, Germany, 14 July 2021 - Grünenthal, a science-based pharmaceutical company and a leader in pain therapy, announces that the company has successfully extended its existing bond financing by €300 million to a total sum of €950 million. This extension has been made to one of the two tranches of the recently issued bond with an interest rate of 4.125%, maturing in 2028. The new Senior Secured Notes were issued at a price of 102% of face value.

In May this year, Grünenthal had issued its first bond of €650 million comprising two tranches: the first tranche of €400 million Notes with an interest rate of 3.625% due in 2026 and the second tranche of €250 million now extended to €550 million Notes due in 2028.

The net proceeds will be used to pay existing bank liabilities and extend Grünenthal's debt maturity profile. Around 95 percent of Grünenthal's debt facilities now mature in 2026 or later.

This bond extension provides the company with additional headroom for targeted acquisitions, a key component of its growth strategy. "The strong demand has underpinned the confidence of investors in our strategy. With the additional financial flexibility, we will be able to further seize attractive investment opportunities and strengthen our position as a leader in pain management," said Fabian Raschke, CFO Grünenthal.

Inorganic growth is one of the key pillars of Grünenthal's strategy. The company has invested approximately €1.3 billion in acquisitions of established brands since 2017 and remains focused on acquiring products that immediately strengthen its EBITDA and to further invest in pain research.

Grünenthal notes are currently rated 'B+' (positive outlook) by Standard & Poor's ; 'BB+' (stable outlook) by Fitch Ratings and 'B1' (stable outlook) by Moody's Investors Service. The company also has a medium Environmental, Social, and Governance (ESG) risk rating by Sustainalytics, placing it in the top five percent of its peers in the pharmaceutical subindustry as per 14^th March 2021.

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These materials are not an offer for sale of securities. The offering is being made by means of an offering memorandum. This announcement does not constitute an offer to sell or the solicitation of an offer to buy the Notes or any other security and shall not constitute an offer, solicitation or sale in the United States or in any jurisdiction in which, or to any persons to whom, such offering, solicitation or sale would be unlawful. The ratings are not a recommendation to buy, sell or hold our senior secured notes and may be subject to revision or withdrawal at any time.

The Notes and the related guarantees have not been, and will not be, registered under the U.S. Securities Act of 1933, as amended (the "Securities Act") or the securities laws of any state or other jurisdiction of the United States, and may not be offered or sold within the United States, or to, or for the account or benefit of, U.S. persons, except pursuant to an exemption from, or in a transaction not subject to, the registration requirements of the Securities Act and applicable state or local securities laws. Accordingly, the Notes and the related guarantees are being offered and sold (i) in the United States only to qualified institutional buyers in accordance with Rule 144A under the Securities Act and (ii) in "offshore transactions" to non-U.S. persons outside the United States in accordance with Regulation S under the Securities Act.

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Forward-looking statements

This news release may include "forward-looking statements" within the meaning of the securities laws of certain applicable jurisdictions. These forward-looking statements include, but are not limited to, all statements other than statements of historical facts contained in this news release, including, without limitation, those regarding the Company's intentions, beliefs or current expectations concerning, among other things: the Company's future financial conditions and performance, results of operations and liquidity; the Company's strategy, plans, objectives, prospects, growth, goals and targets and future developments in the markets in which the Company participates or is seeking to participate. These forward-looking statements can be identified by the use of forward-looking terminology, including the terms "anticipate", "believe", "continue", "ongoing", "estimate", "expect", "intend", "may", "plan", "potential", "predict", "project", "target", "seek" or, in each case, their negative, or other variations or comparable terminology. By their nature, forward-looking statements involve known and unknown risks, uncertainties and other factors because they relate to events and depend on circumstances that may or may not occur in the future. Readers are cautioned that forward-looking statements are not guarantees of future performance and that the Company's actual financial condition, results of operations and cash flows, and the development of the industry in which the Company operates, may differ materially.

About Grünenthal

Grünenthal is a global leader in pain management and related diseases. As a science-based, fully-integrated pharmaceutical company, we have a long track record of bringing innovative treatments and state-of-the-art technologies to patients worldwide. Our purpose is to change lives for the better - and innovation is our passion. We are focusing all of our activities and efforts on working towards our vision of a world free of pain.

Grünenthal is headquartered in Aachen, Germany, and has affiliates in 29 countries across Europe, Latin America and the US. Our products are available in around 100 countries. In 2020, Grünenthal employed around 4,500 people and achieved sales of around €1.3 bn.

More information: www.creditors.grunenthal.com

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