Sandoz strengthens its balance sheet by issuing new bonds to repay spin-off term loans, and signs new USD 2 billion revolving credit facility
Sandoz (SIX:SDZ/OTCQX:SDZNY) has announced significant financial restructuring moves to strengthen its balance sheet. The company has fully repaid USD 750 million equivalent in USD and EUR term loans from September 2023 through three successful bond issuances:
- A dual-tranche CHF bond: CHF 165M (3-year, 1.25% coupon) and CHF 235M (8-year, 1.75% coupon)
- A EUR 500M single-tranche bond (10-year, 4.0% coupon)
The EUR tranche achieved a six-times oversubscription rate. Additionally, Sandoz has secured a new USD 2.0 billion multi-currency revolving credit facility, replacing the previous USD 1.25 billion facility. These transactions are expected to reduce the annual interest rate on gross debt to below 4%, while extending the debt-maturity profile to 2035 with an average maturity of 5.5 years.
Sandoz (SIX:SDZ/OTCQX:SDZNY) ha annunciato importanti operazioni di ristrutturazione finanziaria per rafforzare il proprio bilancio. L'azienda ha completamente rimborsato 750 milioni di USD equivalenti in prestiti a termine in USD ed EUR da settembre 2023 attraverso tre emissioni obbligazionarie di successo:
- Un'obbligazione in due tranche in CHF: CHF 165M (3 anni, cedola 1,25%) e CHF 235M (8 anni, cedola 1,75%)
- Un'obbligazione singola in EUR da 500 milioni (10 anni, cedola 4,0%)
La tranche in EUR ha ottenuto un tasso di sovrascrittura sei volte superiore. Inoltre, Sandoz ha assicurato una nuova linea di credito revolving multi-valuta da 2,0 miliardi di USD, sostituendo la precedente linea da 1,25 miliardi di USD. Queste operazioni dovrebbero ridurre il tasso di interesse annuale sul debito lordo a meno del 4%, estendendo il profilo di scadenza del debito fino al 2035 con una scadenza media di 5,5 anni.
Sandoz (SIX:SDZ/OTCQX:SDZNY) ha anunciado importantes movimientos de reestructuración financiera para fortalecer su balance. La compañía ha reembolsado completamente 750 millones de USD equivalentes en préstamos a plazo en USD y EUR desde septiembre de 2023 a través de tres emisiones de bonos exitosas:
- Un bono en dos tramos en CHF: CHF 165M (3 años, cupón del 1,25%) y CHF 235M (8 años, cupón del 1,75%)
- Un bono en un solo tramo en EUR de 500 millones (10 años, cupón del 4,0%)
La tranche en EUR logró una tasa de sobree suscripción de seis veces. Además, Sandoz ha asegurado una nueva línea de crédito revolving multimoneda de 2,0 mil millones de USD, reemplazando la anterior línea de 1,25 mil millones de USD. Se espera que estas transacciones reduzcan la tasa de interés anual sobre la deuda bruta a menos del 4%, mientras que extienden el perfil de vencimiento de la deuda hasta 2035 con un vencimiento promedio de 5,5 años.
산도즈 (SIX:SDZ/OTCQX:SDZNY)는 재무 구조 조정 조치를 발표하여 재무 상태를 강화했습니다. 이 회사는 2023년 9월부터 7억 5천만 달러에 해당하는 USD 및 EUR의 장기 대출을 세 차례의 성공적인 채권 발행을 통해 전액 상환했습니다:
- 두 개의 트랜치로 구성된 CHF 채권: CHF 1억 6천 5백만 (3년, 1.25% 쿠폰) 및 CHF 2억 3천 5백만 (8년, 1.75% 쿠폰)
- EUR 5억 단일 트랜치 채권 (10년, 4.0% 쿠폰)
EUR 트랜치는 여섯 배의 초과 청약률을 달성했습니다. 또한, 산도즈는 이전의 12억 5천만 달러 시설을 대체하는 새로운 20억 달러 다통화 회전 신용 시설을 확보했습니다. 이러한 거래는 총 부채에 대한 연간 이자율을 4% 미만으로 낮추고, 2035년까지 부채 만기 프로필을 연장하며 평균 5.5년의 만기를 제공합니다.
Sandoz (SIX:SDZ/OTCQX:SDZNY) a annoncé d'importantes mesures de restructuration financière pour renforcer son bilan. L'entreprise a entièrement remboursé 750 millions USD équivalents en prêts à terme en USD et EUR depuis septembre 2023 grâce à trois émissions obligataires réussies :
- Une obligation en deux tranches en CHF : CHF 165M (3 ans, coupon de 1,25 %) et CHF 235M (8 ans, coupon de 1,75 %)
- Une obligation en tranche unique en EUR de 500 millions (10 ans, coupon de 4,0 %)
La tranche en EUR a obtenu un taux de sursouscription de six fois. De plus, Sandoz a sécurisé une nouvelle ligne de crédit revolving multidevises de 2,0 milliards USD, remplaçant l'ancienne ligne de 1,25 milliard USD. Ces opérations devraient réduire le taux d'intérêt annuel sur la dette brute à moins de 4 %, tout en prolongeant le profil de maturité de la dette jusqu'en 2035 avec une maturité moyenne de 5,5 ans.
Sandoz (SIX:SDZ/OTCQX:SDZNY) hat bedeutende finanzielle Umstrukturierungsmaßnahmen angekündigt, um die Bilanz zu stärken. Das Unternehmen hat insgesamt 750 Millionen USD, die in USD und EUR Terminkrediten angelegt waren, vollständig zurückgezahlt, und zwar seit September 2023 durch drei erfolgreiche Anleiheemissionen:
- Eine Dual-Tranche CHF-Anleihe: CHF 165M (3 Jahre, 1,25% Kupon) und CHF 235M (8 Jahre, 1,75% Kupon)
- Eine EUR 500M Einzeltranche-Anleihe (10 Jahre, 4,0% Kupon)
Die EUR-Tranche erreichte eine sechsmalige Überzeichnung. Darüber hinaus hat Sandoz eine neue revolving Kreditfazilität in Höhe von 2,0 Milliarden USD in verschiedenen Währungen gesichert, die die vorherige Fazilität von 1,25 Milliarden USD ersetzt. Diese Transaktionen sollen die jährliche Zinslast auf die Bruttoverschuldung auf unter 4% senken und das Fälligkeitsprofil der Schulden bis 2035 mit einer durchschnittlichen Laufzeit von 5,5 Jahren verlängern.
- Secured larger USD 2.0B revolving credit facility, up from USD 1.25B
- Reduced annual interest rate on gross debt to below 4%
- Strong demand with 6x oversubscription for EUR bond tranche
- Extended debt maturity profile to 2035
- Maintains investment grade credit ratings
- Carrying significant debt load requiring refinancing
MEDIA RELEASE
NOT FOR DISTRIBUTION IN OR INTO THE UNITED STATES, AUSTRALIA, CANADA OR JAPAN
- New USD 2.0 billion multi-currency revolving credit facility (RCF) in place to further strengthen Sandoz balance sheet and liquidity
- New facility replaces initial and unutilized USD 1.25 billion RCF, in place since spin-off in 2023
- Dual-tranche CHF 400m and single-tranche EUR 500 million bonds issued
- Proceeds used to fully repay USD 750 million equivalent in USD and EUR term loans and extend debt maturities to 2035, while reducing overall interest expenses
Basel, March 31, 2025 – Sandoz (SIX:SDZ/OTCQX:SDZNY), the global leader in generic and biosimilar medicines, today announced that it has fully repaid USD 750 million equivalent in USD and EUR term loans that were put in place in September 2023, just before the spin-off from its former parent.
The term loan repayment was fully funded from the proceeds of three successful bond transactions earlier this month:
- On March 13, Sandoz issued a three-year CHF 165 million and an eight-year CHF 235 million bond, with attractive annual coupons of
1.25% and1.75% , respectively - On March 17, Sandoz issued a single-tranche EUR 500 million bond with a tenor of 10 years and an annual coupon of
4.0% - All transactions were well received, with a six-times oversubscription of the final orderbook on the EUR tranche; this was the largest oversubscription rate achieved by Sandoz for a single tranche
Remco Steenbergen, CFO of Sandoz, said: “These successful transactions and the new RCF will further strengthen our balance sheet, giving us significant financial leeway going forward. We have built a robust maturity profile and substantially reduced our financing costs since independence.”
With these latest transactions, the Sandoz annual interest rate on gross debt is expected to be reduced to below
A new multi-currency RCF of USD 2 billion further strengthens the Sandoz balance sheet. This new facility has a five-year maturity, with an option to extend twice by another year. This replaces the unutilized USD 1.25 billion RCF put in place in 2023.
The transactions were supported by a core banking group to Sandoz including Bank of America, BNP Paribas, Citi, Deutsche Bank, HSBC, Mizuho, SEB, Societe Generale and UBS.
Sandoz aims to consistently maintain an investment grade credit rating and is rated Baa2 (stable outlook) by Moody’s and BBB (stable outlook) by S&P.
DISCLAIMER
This Media Release contains forward-looking statements, which offer no guarantee with regard to future performance. These statements are made on the basis of management’s views and assumptions regarding future events and business performance at the time the statements are made. They are subject to risks and uncertainties including, but not confined to, future global economic conditions, exchange rates, legal provisions, market conditions, activities by competitors and other factors outside of the control of Sandoz. Should one or more of these risks or uncertainties materialize or should underlying assumptions prove incorrect, actual outcomes may vary materially from those forecasted or expected. Each forward-looking statement speaks only as of the date of this Media Release, and Sandoz undertakes no obligation to publicly revise any forward-looking statements, except as required by law. Accordingly, undue reliance should not be placed on the forward-looking statements.
The distribution of this Media Release may be restricted by law in certain jurisdictions and persons into whose possession any document or other information referred to herein comes should inform themselves about and observe any such restriction. Any failure to comply with applicable securities laws in such jurisdiction may constitute a violation of the securities laws of such jurisdiction.
This Media Release and the information contained herein does not constitute or form part of an offer, invitation or recommendation to purchase, sell or subscribe for any securities of Sandoz Group AG or the solicitation of any offer, invitation or recommendation to purchase, sell or subscribe for any securities of Sandoz Group AG, to any person in Australia, Canada, Japan or the United States, or in any jurisdiction to whom or in which offer or solicitation is unlawful.
THIS PRESS RELEASE IS NOT AN OFFER OF SECURITIES FOR SALE IN THE UNITED STATES. SECURITIES MAY NOT BE OFFERED OR SOLD IN THE UNITED STATES ABSENT REGISTRATION OR AN EXEMPTION FROM REGISTRATION. THE BONDS HAVE NOT BEEN AND WILL NOT BE REGISTERED IN THE UNITED STATES AND MAY NOT BE OFFERED OR SOLD WITHIN THE UNITED STATES OR TO ANY U.S. PERSON, AND THIS MEDIA RELEASE MAY NOT BE DISTRIBUTED IN THE UNITED STATES.
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ABOUT SANDOZ
Sandoz (SIX: SDZ; OTCQX: SDZNY) is the global leader in generic and biosimilar medicines, with a growth strategy driven by its Purpose: pioneering access for patients. More than 20,000 people of 100 nationalities work together to ensure 900 million patient treatments are provided by Sandoz, generating substantial global healthcare savings and an even larger social impact. Its leading portfolio of approximately 1,300 products addresses diseases from the common cold to cancer. Headquartered in Basel, Switzerland, Sandoz traces its heritage back to 1886. Its history of breakthroughs includes Calcium Sandoz in 1929, the world’s first oral penicillin in 1951, and the world’s first biosimilar in 2006. In 2024, Sandoz recorded net sales of USD 10.4 billion.
CONTACTS
| Global Media Relations contacts | Investor Relations contacts |
| Global.MediaRelations@sandoz.com | Investor.Relations@sandoz.com |
| Joerg E. Allgaeuer +49 171 838 4838 | Craig Marks +44 7818 942 383 |
| Chris Lewis +49 174 244 9501 | Tamara Hackl +41 79 790 5217 |
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