TORONTO, Oct 3, 2016 /PRNewswire/ -
Merus Labs International Inc. ("Merus" or the
"Company") (TSX: MSL, NASDAQ: MSLI) is pleased to announce that it
has made the second of its regularly scheduled quarterly principal
repayments under its new credit facility and achieved a 0.5%
reduction in the annual interest rate under the credit
facility.
Further Reduced Leverage
On September 30, 2016, Merus made
a second payment on its term debt of approximately $8 million. Merus is required to make
quarterly principal payments under this Euro-denominated facility,
which will result in continual deleveraging and reduced interest
expense. Additionally, the facility provides for decreased
interest rates as the Company`s leverage decreases, further
reducing interest expense. As a result of making the current
debt repayment, the Company's financial metrics triggered the
lowering of its annual interest rate from 4.5% to 4.0% effective
October 1, 2016. This lowering
of the interest rate represents annualized savings on interest
expenses of approximately $0.7
million for fiscal 2017. The Company's term debt
facility balance currently stands at €100.5 million reflecting the
most recent repayment. The majority of Merus' revenue,
expenses and debt are Euro-denominated limiting the Company's
exposure to currency fluctuations.
About Merus Labs
Merus Labs is a specialty pharmaceutical company focused on
acquiring and optimizing established and growth products. The
Company leverages its expertise and commercial platform in
Europe, Canada and select other markets to deliver
value.
Future-Oriented Financial Information
To the extent any forward-looking statements in this press
release constitutes future-oriented financial information or
financial outlooks within the meaning of securities laws, such
information is being provided to demonstrate the potential
financial performance of Merus and readers are cautioned that this
information may not be appropriate for any other purpose and that
they should not place undue reliance on such future-oriented
financial information and financial outlooks. Future-oriented
financial information and financial outlooks, as with
forward-looking information generally, are, without limitation,
based on the assumptions and subject to the risks set out below
under "Forward-Looking Statements".
Forward-Looking Statements
Certain statements contained in this press release may
constitute "forward-looking statements" within the meaning of the
United States Private Securities Litigation Reform Act of 1995 and
applicable Canadian securities legislation. Forward-looking
statements include statements relating to the Company's interest
expense. Such statements involve assumptions relating to foreign
exchange rates and the Company's credit facility. Although the
Company's management believes that the assumptions underlying these
forward-looking statements are reasonable, they may prove to be
incorrect. Such forward-looking statements involve known and
unknown risks, uncertainties and other factors that may cause the
Company's actual results to be materially different from any future
results expressed or implied by these statements. Such factors
include the following: general economic and business conditions,
changes in demand for Merus' products, changes in competition, the
ability of Merus to integrate acquisitions or complete future
acquisitions, Merus' ability to complete any future financing,
interest rate fluctuations, currency exchange rate fluctuations,
dependence upon and availability of qualified personnel and changes
in government regulation. Investors should refer to the Company's
MD&A, Annual Information Form and Annual Report on 40-F for a
more comprehensive discussion of the risks that are material to the
Company and its business. In light of these and other
uncertainties, the forward-looking statements included in this
press release should not be regarded as a representation by Merus
that Merus' plans, objectives and guidance will be achieved. These
forward-looking statements speak only as of the date of this press
release, and we undertake no obligation to update or revise the
statements.
SOURCE Merus Labs Inc.