Covis Announces Successful Completion of Its Previously Announced Financial Recapitalization Transaction, Resulting in a Material Strengthening of Its Financial Position
– Transaction supported by 100% of First Lien and 100% of Second Lien Lenders
– Results in material strengthening of the Company’s balance sheet and liquidity profile
– Existing Equity Sponsors remain the majority shareholder in Covis
– Covis operationally and financially in a position to scale its business organically and inorganically
Zug, Switzerland, June 01, 2023 – Covis Finco Sarl (together with its subsidiaries “Covis” or the “Company”), today announced the closing of its financial recapitalization transaction per the previously announced Support Agreement entered into with its Equity Sponsors, 100% of its First Lien Lenders (including Revolving Facility Lenders) and 100% of its Second Lien Lenders (the “Recapitalization”). The Recapitalization and resulting ~$450 million debt reduction right-sizes Covis’ balance sheet and materially improves its go-forward liquidity and cash flow profile. Funds managed by an affiliate of Apollo Global Management (the “Equity Sponsors”) remain majority owners of the Company, while the First Lien Lenders will receive a significant minority stake.
The Company is now positioned to scale its business through execution of organic growth initiatives while also pursuing inorganic growth opportunities, which have historically been a key value lever for the Company.
“We are pleased to have received unanimous support from all of our key financial stakeholders to complete this transaction and are excited to capitalize on the resulting operational and financial flexibility to profitably and sustainably scale the business with a primary focus on patient outcomes and improving the health of people with serious medical conditions,” said Michael Porter, CEO of Covis.
Covis’ advisors included Paul, Weiss, Rifkind, Wharton & Garrison LLP and Slaughter and May as legal counsel and PJT Partners as financial advisor.
The First Lien Term Lenders were advised by Weil, Gotshal & Manges LLP as legal counsel and Houlihan Lokey Capital, Inc. as financial advisor and the Administrative Agent for the Revolving Facility Lenders and Second Lien Lenders were advised by Freshfields Bruckhaus Deringer LLP as legal counsel and Berkeley Research Group, LLC as financial advisor.
Covis Pharma, founded in 2011 and headquartered in Luxembourg, is a global specialty pharmaceutical company that markets therapeutic solutions for patients with life-threatening conditions and chronic illnesses. Additional information is available at www.covispharma.com.