OHA Partners with Emergent BioSolutions for Debt Refinancing
OHA Partners with Emergent BioSolutions for Debt Refinancing
Oak Hill Advisors (“OHA”) has taken on a key role as the Administrative Agent and sole lender for a substantial $250 million term loan facility aimed at supporting Emergent BioSolutions Inc. This global leader specializes in products that enhance lives and tackle vital public health challenges. This strategic move is not just a financial transaction; it represents a crucial step in Emergent's multi-year journey to solidify and stabilize its financial framework.
Enhancing Financial Stability
As a part of this loan agreement, Emergent has issued OHA with 2.5 million warrants along with common stock amounting to $10 million. The calculations for the number of shares and the warrant strike prices will reflect the average stock price over a specific period, showcasing a calculated approach to investment and financial structuring.
OHA’s Strategic Role
The term loan reflects OHA’s commitment to addressing unique financial situations. It's designed to provide targeted support where it's most needed, showcasing their proficiency in the field. This financial backing isn't merely about numbers; it symbolizes a partnership that can adapt and respond to the evolving demands of business and finance.
Comments from Leadership
Joe Papa, the President and CEO of Emergent, highlighted the importance of this refinancing, stating that the company has implemented essential strategies over the last 18 months to enhance their balance sheet. These strategies include finalizing various asset divestitures and resolving legacy challenges, all of which are crucial to their efforts in stabilizing their financial profile.
Path to Growth
With the new credit facility secured, Papa expressed enthusiasm about the potential for future investments and growth opportunities. He noted their goal of reducing net debt by over $200 million within the year, which positions Emergent for a robust transformation. The flexibility that comes with this new financing allows them to operate more freely, ensuring they remain agile in addressing market demands.
A Promising Partnership
Joseph Goldschmid, a Managing Director at OHA, echoed the sentiments of collaboration and support, emphasizing the vital role that this financing plays in ensuring Emergent can continue delivering life-saving products. He expressed excitement about partnering with the company as it embarks on this important chapter of growth and innovation.
About Oak Hill Advisors
Oak Hill Advisors is recognized as a leading global credit-focused alternative asset manager with deep industry expertise gained over three decades. Managing approximately $65 billion in assets as of mid-2024, OHA focuses on providing attractive risk-adjusted returns by partnering with various institutions and individuals. Their extensive investment strategies span across private credit, high-yield bonds, distressed debt, and more, underlining their commitment to long-term partnerships and customized solutions.
With over 400 professionals available across six global offices, OHA prides itself on a collaborative method that meets diverse credit needs. As the private markets platform for T. Rowe Price Group, Inc. (NASDAQ: TROW), OHA continues to shape the investment landscape by delivering tailored financial solutions even amidst fluctuating markets.
Frequently Asked Questions
What is OHA's role in the Emergent refinancing?
OHA acts as the Administrative Agent and sole lender for a $250 million term loan facility aimed to support Emergent's financial stability.
What benefits does this financing provide to Emergent?
This debt refinancing allows Emergent to stabilize its financial profile, reduce net debt significantly, and enables future investment opportunities.
How does the loan structure benefit OHA?
The bespoke loan structure highlights OHA's expertise in managing complex financial situations, enhancing their strategic partnerships.
What is the background of Oak Hill Advisors?
OHA is a global credit-focused alternative asset manager with over 30 years of experience, managing approximately $65 billion across varied credit strategies.
What does the partnership mean for the healthcare sector?
This partnership ensures continued support for Emergent in providing critical health products, reinforcing OHA's commitment to impactful investments in public health challenges.
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