Biocon Biologics refinances $1.1 bn long-term debt via bonds, new facility
Biocon Biologics has secured a new syndicated debt facility through a commitment agreement. Photo: X@BioconBiologics
Bengaluru-based biopharma company Biocon’s arm, Biocon Biologics Limited (BBL), announced the successful pricing of its debut $800 million (Rs 66,763 million) senior secured notes (bonds) due 2029 at a coupon of 6.67 per cent, the company said in a statement.
Biocon Biologics Global, a wholly-owned subsidiary of BBL, will issue the bonds, which will be secured by a robust collateral package. The bonds are expected to receive a BB rating from both S&P and Fitch and will be listed on the Singapore Stock Exchange. The transaction is scheduled to settle on October 9, 2024, subject to customary closing conditions.
BofA Securities, Citigroup, HSBC, and Standard Chartered Bank served as joint global coordinators, lead managers, and bookrunners, while BNP Paribas and Mizuho acted as joint lead managers and bookrunners.
In addition, Biocon Biologics has secured a new syndicated debt facility through a commitment agreement. The proceeds from this facility and the bond issuance will primarily be used to refinance existing debt of $1.1 billion (Rs 93,468 million). This refinancing will enhance the company’s liquidity, increase financial flexibility, and allow for reinvestment into the business.
Shreehas Tambe, chief executive officer and managing director of Biocon Biologics, said, “This strategic refinancing underscores our commitment to enhancing financial flexibility, fuels Biocon Biologics’ long-term growth, and is core to the consolidation phase of our business. We expect this transaction to strengthen our capital structure and allow us to redeploy investments into the business, including advancing our differentiated pipeline of biosimilars. It will also enable us to diversify our investor base to include marquee global funds and healthcare investors who seek to participate in Biocon Biologics’ growth story.”
First Published: Oct 03 2024 | 10:35 AM IST