Euroapi finalizes the financing of its Focus plan

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(Boursier.com) — Euroapi finalized and secured the financing of its Focus-27 strategic plan, and signed with Sanofi a new amendment to the global manufacturing and supply contract signed in 2021.

RCF credit agreement of 451 ME

Euroapi and its banking syndicate have signed a new revolving credit (RCF) of 451 million euros with security, which refinances the existing revolving credit, with a deadline extended to February 2029. Borrowings contracted under this agreement will bear interest at a variable rate indexed to Euribor, plus an applicable margin and based on Euroapi’s leverage ratio, defined as total net debt relative to Core EBITDA. The RCF will be subject to a clause (‘covenant’) according to which the leverage ratio cannot exceed 4.00x from June 30, 2027, as well as a liquidity clause of 50 ME applicable from the date of signature and until the loan matures.

Super subordinated hybrid bond subscribed by Sanofi

Sanofi confirmed its support in the execution of the Focus-27 plan by investing 200 million euros in a Super Subordinated Perpetual Hybrid Bond. This non-dilutive instrument, which will appear in “Equity” of the consolidated financial statements, provides Euroapi with additional financial flexibility in the implementation of the Focus-27 plan. Euroapi may decide to defer and capitalize the payment of interest on each payment date, subject to certain conditions, including no payment of dividends or share buybacks.
The hybrid bond carries a coupon of 8.113% until the first reset date, scheduled for February 2029.

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The finalization (closing) of the refinancing of the RCF and the Super Subordinated Perpetual Hybrid Bond is expected before the end of October 2024, and will put an end to the company’s collaboration with the ad hoc trustee appointed in June 2024 .

54 ME agreement concluded with Sanofi

To support the implementation of Focus27, Sanofi has agreed to reserve a minimum available capacity for 5 selected products manufactured by Euroapi. Sanofi will thus pay 54 ME, including 18 ME in the second half of 2024 and 36 ME in 2025. These capacity reservations will make it possible to secure revenues and increase the overall performance of the 5 products.

In addition to the capacity reservation, Sanofi and Euroapi have agreed on new amendments to the global manufacturing and supply contract signed in 2021 including guaranteed volumes for Sevelamer, which will provide more visibility on Haverhill’s activity in the context of its disinvestment. These amendments, including capacity reservations, are the subject of regulated agreements under the French Commercial Code.

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