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Covis signs support agreements with lenders for recapitalization
By Wendy Van Sickle
Columbus, Ohio, April 6 – Covis Finco Sarl entered into a support agreement with its equity sponsors, about 95% of its first-lien lenders, including its revolving facility lenders, and 100% of its second-lien lenders regarding the terms of a comprehensive financial recapitalization that will reduce its debt by about $450 million, the Covis Pharma said in a news release Thursday.
The company said the recapitalization leads to a material strengthening of its balance sheet and liquidity position. Upon its consummation, funds managed by an affiliate of Apollo Global Management will remain majority owners of Covis while the first-lien lenders will receive a significant minority stake.
To implement the recapitalization, Covis is soliciting approval from its lenders of the transactions contemplated by the support agreement. The company said it expects to complete this process quickly, with the strong support of its equity sponsors and lenders, and anticipates a near-term closing of the recapitalization.
“Pro forma for the recapitalization, the company will be operationally and financially in a position to scale its business, including through commercial and life cycle management initiatives in order to grow its existing portfolio as well as geographic expansion that leverages its commercial infrastructure and network. Covis will also pursue inorganic growth opportunities, which have historically been a key value lever for the company,” the release states.
Covis is a Zug, Switzerland-based pharmaceutical company with a focus on medicines in respiratory and hospital/critical care.
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