Glenmark Pharmaceuticals Ltd has planned to raise up to $200 million through US dollar-denominated bonds to refinance existing debt. For the bond issuance, the pharmaceutical firm will organize roadshows from 14-19 January covering Asia, Europe and the Middle East, it informed the exchanges. The fund-raising will happen through US dollar-denominated fixed-rate senior unsecured notes with a tenor of up to four years. The bonds are rated ‘BB/Stable’ by Fitch Ratings.
“Fitch expects financial leverage – measured by adjusted net debt operating EBITDAR of 2.5x in the financial year ended March 2019 (FY19) to stay broadly stable over the next few years. Glenmark is likely to continue to incur moderate CAPEX on fixed assets and to acquire territorial sale rights for other companies’ drugs, consistent with our view of the company’s growth strategy,” the rating agency said in a release. The proceeds from the bond issuance will be used to refinance existing debt raised via dollar bonds in 2016. The earlier dollar notes, priced at 4.5 per cent coupon rate, have a bi-annual payment schedule and mature in 2021. The company has appointed Barclays, Emirates NBD Capital, ING and Mitsubishi UFJ Financial Group as joint global coordinators to the issue.
In September 2018, Glenmark had refinanced part of its debt raised via foreign currency convertible bond, due to mature in 2022, through a $90.8 million US-dollar denominated bank loan.