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5/6/2021

  • Grünenthal places €650 million bond
  • Crucial step to finance the company's growth strategy and its efforts to make progress towards its vision of a world free of pain

 

Aachen, Germany, 06 May 2021 – Grünenthal, a science-based pharmaceutical company and a leader in pain therapy, announces that it has successfully closed its first bond transaction.

The bond with a volume of €650 million includes a five-and-a-half-year tranche of €400 million with a coupon of 3.625-percent due in November 2026, as well as a seven-year tranche of €250 million which bears interest at 4.125 percent and will be due in May 2028. Due to significant investor demand, the original offer size was increased by €150 million.

“This first ever bond placement marks a milestone for Grünenthal,” said Gabriel Baertschi, CEO Grünenthal. “It helps us to continue our successful transformation journey by enriching our product portfolio with established brands and investing in the development of innovative pain therapies.”

In preparation for the bond, Grünenthal was assessed by three major independent credit rating agencies for the first time. They confirmed that Grünenthal is in a solid financial position. Standard & Poor's assigned Grünenthal and the bond 'B+' ratings with a positive outlook. Fitch Ratings assigned a rating of 'BB' to Grünenthal (stable outlook) and a rating of 'BB+' to the bond. Moody's Investors Service assigned a 'B1' rating to both the company and the bond, with a stable outlook.

“We are encouraged by the positive feedback from the market and the independent rating results, which show that we are on the right course. The bond will help to optimise our capital structure and diversify our financial profile," explained Fabian Raschke, CFO Grünenthal. “In February, we successfully extended the maturities of our €400 million revolving credit facility and our €535 million term loan bank facilities. With the bond, we will gain further flexibility to pursue targeted investments.”

Grünenthal has a successful M&A track record, and has invested approximately €1.3 billion in acquisitions of established brands since 2017. Additionally, Grünenthal recently acquired the Swiss biotech company Mestex AG and its investigational medicine, which will enable the company to tap into the global osteoarthritis market.

In early April, Grünenthal announced the results of its first Environmental, Social, and Governance (ESG) rating which was also positively recognized by the bond investors. The company was categorized as ‘medium ESG risk’, placing it in the top five percent of its peers in the pharmaceutical subindustry.

These materials are not an offer for sale of securities. The offering is being made by means of an offering memorandum. This announcement does not constitute an offer to sell or the solicitation of an offer to buy the Notes or any other security and shall not constitute an offer, solicitation or sale in the United States or in any jurisdiction in which, or to any persons to whom, such offering, solicitation or sale would be unlawful. The ratings are not a recommendation to buy, sell or hold our senior secured notes and may be subject to revision or withdrawal at any time.

The Notes and the related guarantees have not been, and will not be, registered under the U.S. Securities Act of 1933, as amended (the “Securities Act”) or the securities laws of any state or other jurisdiction of the United States, and may not be offered or sold within the United States, or to, or for the account or benefit of, U.S. persons, except pursuant to an exemption from, or in a transaction not subject to, the registration requirements of the Securities Act and applicable state or local securities laws. Accordingly, the Notes and the related guarantees are being offered and sold (i) in the United States only to qualified institutional buyers in accordance with Rule 144A under the Securities Act and (ii) in “offshore transactions” to non-U.S. persons outside the United States in accordance with Regulation S under the Securities Act.

This communication is only being distributed to and is only directed at (i) persons who are outside the United Kingdom, (ii) persons who are investment professionals falling within Article 19(5) of the Financial Services and Markets Act 2000 (Financial Promotion) Order 2005, as amended (the “Order”), (iii) are persons falling within Article 49(2)(a) to (d) (high net worth companies, unincorporated associations, etc.) of the Order, or (iv) any persons to whom an invitation or inducement to engage in investment activity (within the meaning of section 21 of the Financial Services and Markets Act 2000) in connection with the issue or sale of any securities may otherwise lawfully be communicated or cause to be communicated (all such persons together being referred to as “relevant persons”). The investments to which this press release relates are only available to, and any invitation, offer or agreement to subscribe, purchase or otherwise acquire such securities will be engaged in only with, relevant persons. Any person who is not a relevant person should not act or rely on this press release or any of its contents.

The offer and sale of the Notes will be made pursuant to an exception under the Prospectus Regulation from the requirement to produce a prospectus for offers of securities. This press release does not constitute a prospectus within the meaning of the Prospectus Regulation or an offer to the public.

Manufacturer target market (MIFID II product governance) is eligible counterparties and professional clients only (all distribution channels). No PRIIPs key information document (KID) has been prepared as not available to retail investors in EEA.

The distribution of this press release into certain jurisdictions may be restricted by law. Persons into whose possession this announcement comes should inform themselves about and observe any such restrictions. Any failure to comply with these restrictions may constitute a violation of the laws of any such jurisdiction.

Forward-looking statements
This news release may include “forward-looking statements” within the meaning of the securities laws of certain applicable jurisdictions. These forward-looking statements include, but are not limited to, all statements other than statements of historical facts contained in this news release, including, without limitation, those regarding the Company’s intentions, beliefs or current expectations concerning, among other things: the Company’s future financial conditions and performance, results of operations and liquidity; the Company’s strategy, plans, objectives, prospects, growth, goals and targets and future developments in the markets in which the Company participates or is seeking to participate. These forward-looking statements can be identified by the use of forward-looking terminology, including the terms “anticipate”, “believe”, “continue”, “ongoing”, “estimate”, “expect”, “intend”, “may”, “plan”, “potential”, “predict”, “project”, “target”, “seek” or, in each case, their negative, or other variations or comparable terminology. By their nature, forward-looking statements involve known and unknown risks, uncertainties and other factors because they relate to events and depend on circumstances that may or may not occur in the future. Readers are cautioned that forward-looking statements are not guarantees of future performance and that the Company’s actual financial condition, results of operations and cash flows, and the development of the industry in which the Company operates, may differ materially.

 

About Grünenthal
Grünenthal is a global leader in pain management and related diseases. As a science-based, privately-owned pharmaceutical company, we have a long track record of bringing innovative treatments and state-of-the-art technologies to patients worldwide. Our purpose is to change lives for the better – and innovation is our passion. We are focusing all of our activities and efforts on working towards our vision of a world free of pain.

Grünenthal is headquartered in Aachen, Germany, and has affiliates in 29 countries across Europe, Latin America and the US. Our products are available in around 100 countries. In 2020, Grünenthal employed around 4,500 people and achieved sales of € 1.3 bn.

 

More information: www.creditors.grunenthal.com

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Florian Dieckmann

Head Global Communication

Grünenthal GmbH


52099 Aachen

E-Mail Florian.Dieckmann@grunenthal.com

Phone +49 241 569-2555