- Company intends to operate its business as usual while
continuing to honour its obligations to employees, suppliers and
customers
OAKVILLE, ON, Oct. 16, 2017 /PRNewswire/ - Concordia
International Corp. ("Concordia" or the "Company") (NASDAQ: CXRX)
(TSX: CXR), an international specialty pharmaceutical company
focused on becoming a leader in European specialty, off-patent
medicines, today announced that in conjunction with its ongoing
efforts to realign its capital structure, it has decided to use a
30-day grace period to defer the payment of approximately
$26 million of interest due today on
its $735 million unsecured
notes. The deferral of the interest payment does not result
in an Event of Default until the expiry of the 30-day grace
period.
The Company will use this time to continue its discussions with
lenders with the goal of reaching a consensual agreement that would
significantly reduce the Company's debt and interest payments to
create a financial foundation able to support Concordia's long-term
growth.
"The decision to delay the interest payment on our unsecured
notes was a carefully considered initiative to preserve our
financial resources as we explore alternatives to strengthen our
capital structure," stated Allan
Oberman, Chief Executive Officer of Concordia. "As we
continue to consider various alternatives, we are prioritizing a
sustainable capital structure that we believe will allow us to
successfully execute our long-term DELIVER strategy and position us
for success as we seek to become a leading European specialty
off-patent medicines player."
Mr. Oberman continued, "With approximately $340 million of cash on hand as of September 30, 2017, we are confident we have
sufficient liquidity in the near term to operate our business as
usual while we work to achieve our financial goals, honouring our
obligations to our employees, customers and suppliers and providing
safe and effective medicines to our customers and patients."
The Company's decision to delay the $26
million interest payment on the $735
million unsecured notes follows its previously announced
efforts to explore and evaluate potential transactional
alternatives, including initiatives to optimize its capital
structure, and its ongoing discussions with the Company's
debtholders and their respective advisors.
About Concordia
Concordia is an international
specialty pharmaceutical company with a diversified portfolio of
more than 200 patented and off-patent products, and sales in more
than 90 countries. Going forward, the Company is focused on
becoming a leader in European specialty, off-patent medicines.
Concordia operates out of facilities in Oakville, Ontario and, through its
subsidiaries, operates out of facilities in Bridgetown, Barbados; London, England and Mumbai, India.
Notice regarding forward-looking statements and
information:
This news release includes forward-looking
statements within the meaning of the United States Private
Securities Litigation Reform Act of 1995 and forward-looking
information within the meaning of Canadian securities laws,
regarding Concordia and its business, which may include, but are
not limited to, statements with respect to the intent to realign
the Company's capital structure, ongoing efforts to realign the
Company's capital structure, exploration and consideration of
alternatives to strengthen the Company's capital structure, the
Company's liquidity, prioritizing a sustainable capital structure
for the Company, initiatives to optimize the Company's capital
structure, creating a financial foundation that will be able to
support the Company's long-term growth, achieving the Company's
financial goals including any goals with respect to the nature of
an agreement with lenders, the amount of any reduction of the
Company's debt obligations, deferring the interest payment not
resulting in an Event of Default until the expiry of the 30-day
grace period, executing the DELIVER strategy, prioritizing a
sustainable capital structure that will allow Concordia to execute
its long term strategy and position it for success, significantly
reducing the Company's debt and interest payments, continuing the
Company's discussions with its lenders, the focus on becoming a
leader in European specialty, off-patent medicines, operating
business as usual and honouring obligations to employees, customers
and suppliers, and providing safe and effective medicines.
The forward‐looking events and circumstances discussed in
this news release may not occur by certain dates or at all and
could differ materially as a result of known and unknown risk
factors and uncertainties affecting Concordia, including risks
associated with the inability to realign or optimize the Company's
capital structure, the unavailability of alternatives to strengthen
the Company's capital structure, the inability to create a
financial foundation for the Company that will be able to support
its long-term growth, delaying interest payments on the Company's
unsecured notes, the inability to execute the DELIVER strategy, the
inability to achieve the Company's financial goals including with
respect to the nature of any agreement with its lenders, the
inability to reduce the Company's debt and interest payments, the
Company's liquidity not being sufficient to operate it business and
meet its continuing obligations, the Company's inability to become
a leader in European specialty, off-patent medicines, the inability
of the Company to operate business as usual, the inability of the
Company to honour its obligations, the inability of the Company to
provide safe and effective medicines, an Event of Default occurring
at the expiry of the 30-day grace period, Concordia defaulting on
its obligations (including under its debt agreements), which could
result in Concordia having to file for bankruptcy or insolvency,
Concordia being put into an insolvency or bankruptcy proceeding
during any grace period or default period, Concordia's securities,
increased indebtedness and leverage, Concordia's growth, risks
associated with the use of Concordia's products, the inability to
generate cash flows, revenues and/or stable margins, the inability
to repay debt and/or satisfy future obligations, risks associated
with Concordia's outstanding debt, risks associated with the
geographic markets in which Concordia operates and/or distributes
its products, risks associated with distribution agreements, the
pharmaceutical industry and the regulation thereof, regulatory
investigations, the failure to comply with applicable laws,
legislative changes (including, without limitation, the U.K. Health
Service Medical Supplies (Costs) Act), economic factors, market
conditions, risks associated with growth and competition, the
failure to obtain regulatory approvals, the equity and debt markets
generally, general economic and stock market conditions, risks
associated with fluctuations in exchange rates (including, without
limitation, fluctuations in currencies), political risks (including
changes to political conditions), risks associated with the
United Kingdom's exit from the
European Union (including, without limitation, risks associated
with legislative changes, regulatory changes in the pharmaceutical
industry, changes in cross‐border tariff and cost structures and
the loss of access to the European Union global trade markets),
risks related to patent infringement actions, the loss of
intellectual property rights, risks and uncertainties detailed from
time to time in Concordia's filings with the Securities and
Exchange Commission and the Canadian Securities Administrators, and
many other factors beyond the control of Concordia. Although
Concordia has attempted to identify important factors that could
cause actual actions, events or results to differ materially from
those described in forward‐looking statements and information,
there may be other factors that cause actions, events or results to
differ from those anticipated, estimated or intended. No
forward‐looking statement or information can be guaranteed. Except
as required by applicable securities laws, forward‐looking
statements and information speak only as of the date on which they
are made and Concordia undertakes no obligation to publicly update
or revise any forward‐looking statement or information, whether as
a result of new information, future events, or otherwise.
SOURCE Concordia International Corp.