Company News
Glenmark Pharma To Raise Up To USD 200 Million To Refinance Debt
MUMBAI : Glenmark Pharmaceuticals Ltd plans to raise up to $200 million through dollar-denominated bonds to refinance debt.
The drugmaker will conduct investor road shows from 14 to 19 January across Asia, Europe and West Asia, it informed the exchanges on Tuesday.
The fixed-rate senior unsecured dollar bonds with a tenor of up to four years 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 statement.
Proceeds from the bond sale will be used to refinance existing debt raised through dollar bonds in 2016. The earlier dollar notes, priced at 4.5% 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 dollar-denominated bank loan.
Half of Glenmark’s borrowings comprise capital market instruments, of which dollar bonds formed nearly 31%. The other half came from bank loans, mostly dollar-denominated bank loans.
The Saldanha Family Trust, led by Glenmark’s chairman and managing director Glenn Saldanha, holds 46.6% stake in the company, while Singapore’s state investment arm Temasek Holdings (Pvt) Ltd holds 1.3% through its wholly-owned indirect subsidiary Mauritius-based Aranda Investments Pte Ltd.
Other shareholders in the company include HSBC Pooled Funds, which owns 3.3%, Life Insurance Corp. of India with 1.8% and Franklin Templeton Fund with 1.9%.
Glenmark has 16 facilities and seven R&D centres across the US, India, Switzerland, Argentina and the Czech Republic, and has local offices in over 50 countries and commercial presence in over 80 countries across the world.
While the US, at 32%, fetches the highest share of revenue for the company, India comes close at 29%, while the remaining 12% comes from Europe, 4% from Latin America and 13% from the rest of the world, including other Asian and African countries.-Live Mint
