Last September, Almirall closed the acquisition of Allergan’s Medical Dermatology business in the US by using a €400m bridge loan. The company announces its debt refinancing through the launch of €250 MM senior unsecured conditionally convertible bonds led by JP Morgan

and a €150 MM senior unsecured Club Bank Deal led by BBVA.

The new debt will have 3 years maturity for the bonds and 5 years for the Club Bank Deal.

Following the closing of this transaction, Almirall estimates the financing costs (incl. fees) would be around 1.3% per annum, which would result in an improvement of the company’s cost of capital (WACC).

Almirall, S.A. announces the launch of a €250 MM offering of senior unsecured bonds due 2021 (the “Bonds”), which may be re-designated as senior unsecured bonds convertible into or exchangeable for ordinary shares of the company subject to the approval of the general shareholders’ meeting. The Gallardo family is expected to vote in favour of such re-designation at the meeting.

The company intends to execute this bond financing together with an equity neutral strategy in order to minimize potential dilution of current shareholders. The company has the intention to accelerate the building of its treasury stock position.

After the closing of the bonds’ offering, the company intends to seek admission to trading for the Bonds on the Frankfurt Stock Exchange. JP Morgan is acting as Sole Bookrunner in relation to the offering of the Bonds.

The company intends to use the net proceeds from the offering, together with the proceeds from a new €150 MM (bullet 5 years) senior unsecured Club Bank Deal syndicated loan led by BBVA, to repay in full its €400 MM bridge loan raised in September 2018 for the acquisition of Allergan’s Medical Dermatology business in the United States.

Upon completion of this refinancing, Almirall estimates that its effective financing costs (including bank fees) would be around 1.3% per annum and would allow for rapid balance sheet deleveraging, while further optimizing its cost of capital (WACC).

Almirall S.A. is rated BB- (Outlook Stable) by S&P and Ba3 (Outlook Stable) by Moody’s. The Bonds will be rated BB- by S&P.