July 13, 2024
Sotera Well being Closes on 0 Million Time period Mortgage B Financing
Sotera Well being Closes on 0 Million Time period Mortgage B Financing

Sotera Well being Companies, LLC

CLEVELAND, Feb. 23, 2023 (GLOBE NEWSWIRE) — Sotera Well being Firm (“Sotera Well being” or the “Firm”) (Nasdaq: SHC), a number one international supplier of mission-critical end-to-end sterilization options and lab testing and advisory companies for the healthcare trade, right this moment introduced that it has efficiently closed on a brand new senior secured Time period Mortgage B facility in an combination principal quantity of $500 million. The Firm had beforehand introduced its intention to enter into a brand new senior secured Time period Mortgage B facility in an combination principal quantity of $425 million. The Firm plans to make use of proceeds of this debt financing, together with money readily available, to: a) fund a beforehand introduced $408 million ethylene oxide litigation settlement in Cook dinner County, IL, topic to the satisfaction or waiver by the Firm of the assorted circumstances for the settlement,  b) pay down current borrowings underneath the Firm’s revolving credit score facility, c) additional improve liquidity and d) for different normal company functions. 

“We’re happy to announce the profitable completion of our $500 million Time period Mortgage B debt financing at phrases which are favorable to the Firm,” stated Chairman and Chief Govt Officer, Michael B. Petras, Jr. “The sturdy market reception for this financing is a testomony to the strong profile of our enterprise. This funding will likely be used to cowl our litigation wants, in addition to present extra liquidity for the Firm.”

The Time period Mortgage B will bear curiosity at a variable price each year, on the Firm’s possibility, of both one-, three-, or six-month SOFR plus 375 foundation factors (subjet to a 50bps ground), or a base price plus 275 foundation factors, in any case payable in arrears. It’s prepayable with out premium or penalty at any time six months after the cut-off date, and features a 1.00% premium for sure repricing transactions that happen within the first six months after the cut-off date. The Mortgage is required to be paid down at 1% of the combination principal quantity ($5 million) per yr, with the stability due on the finish of 2026. The Time period Mortgage B covenants are considerably the identical as these the Firm’s current Credit score Settlement.

About Sotera Well being:

Sotera Well being Firm is a number one international supplier of mission-critical end-to-end sterilization options and lab testing and advisory companies for the healthcare trade. Sotera Well being goes to market by three companies – Sterigenics®, Nordion® and Nelson Labs®. Sotera Well being is dedicated to its mission, Safeguarding International Well being®.

Updates could be discovered every so often on current developments in issues related to buyers on the Investor Relations part of the Firm’s web site at Investor Relations | Sotera Well being. For developments associated to Ethylene Oxide, updates could be discovered at Ethylene Oxide | Sotera Well being.

Ahead-Wanting Statements

Until expressly indicated or the context requires in any other case, the phrases “Sotera Well being,” “Firm,” “we,” “us,” and “our” on this doc seek advice from Sotera Well being Firm, a Delaware company, and, the place acceptable, its subsidiaries on a consolidated foundation. This launch incorporates forward-looking statements that replicate administration’s expectations about future occasions and the Firm’s working plans and efficiency and communicate solely as of the date hereof. You’ll be able to determine these forward-looking statements by means of forward-looking phrases similar to “will,” “might,” “plan,” “estimate,” “challenge,” “consider,” “anticipate,” “count on,” “intend,” “ought to,” “would,” “may,” “goal,” “purpose,” “proceed to,” “positioned to,” “are assured” or the detrimental model of these phrases or different comparable phrases. As well as, any statements that seek advice from expectations, projections or different characterizations of future occasions or circumstances, together with statements about using proceeds from the Time period Mortgage B facility, are forward-looking statements. Any forward-looking statements contained on this launch are based mostly upon our historic efficiency and on our present plans, estimates and expectations of the Firm’s future efficiency and the longer term efficiency of the markets wherein the Firm operates in gentle of data presently out there to us. The inclusion of this forward-looking info shouldn’t be thought to be a illustration by us that the longer term plans, estimates or expectations contemplated by us will likely be achieved. These forward-looking statements are topic to numerous dangers, uncertainties and assumptions referring to our operations, monetary outcomes, monetary situation, enterprise, prospects, development technique and liquidity. These dangers and uncertainties embrace, with out limitation, any disruption within the availability or provide of, or will increase within the worth of ethelyne oxide (“EO”) or cobalt-60 (“Co-60”), together with geopolitical dangers associated to the provision of Co-60 from Russia; international forex trade charges and modifications in these charges; modifications in trade developments, environmental, well being and security rules or preferences; satisfaction of circumstances to finishing the settlement, together with the participation by considerably all Illinois plaintiffs within the settlement; the impression of present and future authorized proceedings and legal responsibility claims, together with litigation associated to purported publicity to emissions of EO from our amenities in Illinois, Georgia and New Mexico and the chance that different claims will likely be made sooner or later relating to those or different amenities; adversarial judgments in opposition to two of our subsidiaries within the EO tort litigation, which if the settlement shouldn’t be profitable might require an appellate bond or different type of safety to enchantment, and plaintiff efforts to implement judgments in opposition to us, any of which can have an adversarial impression on our liquidity within the close to and lengthy phrases, or might trigger the necessity for us to extend our borrowings and, consequently, enhance our curiosity expense; uncertainty within the capital markets and different dangers associated to our capability to lift extra debt financing on affordable phrases or in any respect, together with availability of capital and the impression of future litigation developments on our capability to entry capital markets; our capability to extend capability at current amenities, renew leases for our leased amenities and construct new amenities in a well timed and cost-effective method; competitors for certified staff within the industries wherein we function; the dangers of doing enterprise internationally; and any lack of ability to pursue strategic transactions or discover appropriate acquisition targets. For added dialogue of those dangers and uncertainties.

Please seek advice from the Firm’s filings with the SEC, similar to its annual and quarterly studies, in addition to the Present Report on Type 8-Okay filed by the Firm on January 9, 2023 with the SEC disclosing the phrases of the Illinois settlement. We don’t undertake any obligation to publicly replace or revise these forward-looking statements, besides as in any other case required by legislation.

Supply: Sotera Well being Firm