Euroapi finalizes the financing of its strategic plan with the support of Sanofi

(AOF) – Euroapi (+1.20% to 3.36 euros) announces that it has finalized and secured the financing of its Focus-27 strategic plan, and signed with Sanofi a new amendment to the 2021 global manufacturing and supply contract Sanofi confirmed its support for the execution of the Focus-27 plan by investing 200 million euros in a super subordinated perpetual hybrid bond, a non-dilutive instrument which provides Euroapi with additional financial flexibility in the implementation of the plan.

The active ingredient specialist 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 repurchases.

The group had announced the launch in February 2024 of Focus-27, “a global project to unlock profitable growth and increase returns” through a rationalization of the API portfolio.

To support the implementation of Focus-27, Sanofi has agreed to reserve minimum available capacity for five selected products manufactured by Euroapi. Sanofi will thus pay 54 million euros, including 18 million euros in the second half of 2024 and 36 million euros in 2025. These capacity reservations will help secure revenues and increase the overall performance of the five products.

Euroapi and its banking syndicate have validated a new revolving credit (RCF) of 451 million euros with security, which refinances the existing revolving credit, with a maturity extended to February 2029. The RCF will be subject to a covenant according to which the ratio leverage cannot exceed 4 from June 30, 2027, as well as a liquidity clause of 50 million euros applicable from the date of signature and until the maturity of the credit.

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