Full Press Release Details
Sotera Health Announces Debt Pay Down and Expansion of Revolving Credit Facility
CLEVELAND, Dec. 18, 2020 (GLOBE NEWSWIRE) Sotera Health Company (Nasdaq: SHC), a leading global provider of mission-critical end-to-end sterilization solutions and lab testing and advisory services for the healthcare industry, today announced that it has paid down over $1.1 billion of
indebtedness with the proceeds of its recent initial public offering. Sotera Health used the proceeds of the offering to pay down $341 million of its first lien term loan at the end of November, as well as to redeem all of the $770 million
aggregate principal amount of its senior secured second lien notes on December 14 at a redemption price of 102% of principal (plus accrued and unpaid interest, which was paid with cash on hand).
Sotera Health also announced that it has increased lender revolving loan commitments under its revolving credit facility from $190.0 million to
$347.5 million. The entire revolving credit facility remains undrawn, with no revolving loans presently outstanding.
We believe these actions
establish a capital structure and liquidity profile that support execution of our strategic priorities, which include investing in growth and further de-leveraging, said Scott J. Leffler, Chief Financial
Officer of Sotera Health. Pro forma for the debt paydowns, our net leverage for the last twelve months ended September 30, 2020 was approximately 4.5x.1 At the same time, the increase
in the size of our revolving credit facility has further strengthened our liquidity position.
Jefferies serves as administrative agent under the
credit facility. The lenders under the revolving credit facility include Barclays, BNP Paribas, Citibank, Citizens Bank, Credit Suisse, Goldman Sachs, ING, Jefferies, J.P. Morgan, Key Bank, PSP and RBC.
9100 South Hills Boulevard, Suite 300,
Broadview Heights, OH 44147
440-262-1410 | soterahealth.com
Forward-looking Statements:
Statements in this press release regarding the Company that are not historical facts are forward-looking statements that involve risks and
uncertainties, including statements about the expected impact of the payoff of our debt and the expansion of our revolving credit facility. For additional discussion of these risks and uncertainties, please refer to our filings with the SEC.
Forward-looking statements made in this release speak only as of the date of this release, and the Company undertakes no obligation to update the information contained in this press release to reflect subsequently occurring events or circumstances,
except as required by law.
About Sotera Health:
name Sotera Health was inspired by Soteria, the Greek goddess of safety, and reflects the Company s unwavering commitment to its mission, Safeguarding Global
Health . Sotera Health Company is a leading global provider of mission-critical sterilization and lab testing and advisory services for the healthcare industry. With a
combined tenure across our businesses of nearly 200 years and our industry-recognized scientific and technological expertise, we help to ensure the safety of millions of patients and healthcare practitioners around the world every year. Across our
63 facilities worldwide, we have nearly 2,900 employees who are dedicated to safety and quality. We are a trusted partner to more than 5,800 customers in over 50 countries, including more than 40 of the top 50 medical device companies and
8 of the top 10 global pharmaceutical companies.
Sotera Health goes to market through its three best-in-class companies Sterigenics , Nordion and Nelson Labs . Sterigenics is a leading global provider of outsourced terminal sterilization and irradiation services for the medical device, pharmaceutical, food safety and advanced applications
markets. Nordion is the leading global provider of Co-60 and gamma irradiators, which are key components to the gamma sterilization process. Nelson Labs is a global leader in outsourced microbiological
and analytical chemistry testing and advisory services for the medical device and pharmaceutical industries. Learn more about Sotera Health at soterahealth.com.
| CONTACTS: | ||
| Sally J. Curley, IRC | Jenny Kobin | |
| Curley Global IR, LLC | IR Advisory Solutions | |
| IR@soterahealth.com | IR@soterahealth.com |
Officer, Sotera Health
Source: Sotera Health Company
9100 South Hills Boulevard, Suite 300,
Broadview Heights, OH 44147
440-262-1410 | soterahealth.com
Non-GAAP Financial Measures Reconciliation
| Pro Forma Net Debt | ||||||||||||
| 9/30/2020 | Adj | Pro Forma | ||||||||||
| Revolving Credit Facility | ||||||||||||
| 1st Lien Term Loan B | 2,109.4 | (341.0 | ) | 1,768.4 | ||||||||
| 1st Lien Notes | 100.0 | 100.0 | ||||||||||
| 2nd Lien Notes | 770.0 | (770.0 | ) | |||||||||
| Capital Leases & Other | 32.2 | 32.2 | ||||||||||
| Total Debt | 3,011.6 | (1,111.0 | ) | 1,900.6 | ||||||||
| Less: Cash (1) | 108.3 | (17.4 | ) | 90.9 | ||||||||
| Net Debt | 2,903.3 | 1,809.7 | ||||||||||
| LTM 9/30/20 Adj EBITDA | 401.3 | 401.3 | ||||||||||
| Net Leverage (2) | 7.2x | 4.5x |
9100 South Hills Boulevard, Suite 300,
Broadview Heights, OH 44147
440-262-1410 | soterahealth.com
| LTM | Nine Months ended September 30, | Year ended December 31, | ||||||||||||||
| ($ millions) | 9/30/2020 | 2020 | 2019 | 2019 | ||||||||||||
| Net income (loss) (a) | ($ | 21.9 | ) | $ | 5.9 | $ | 7.3 | ($ | 20.4 | ) | ||||||
| Amortization expense (a) | $ | 79.8 | $ | 59.8 | $ | 60.0 | $ | 80.0 | ||||||||
| Impairment of long-lived assets and intangible assets (b) | $ | 5.8 | $ | 5.8 | ||||||||||||
| Share-based compensation (c) | $ | 5.8 | $ | 4.0 | $ | 15.1 | $ | 16.9 | ||||||||
| One-time bonuses (d) | $ | 1.5 | $ | 0.5 | $ | 2.0 | ||||||||||
| (Gain) loss on foreign currency and embedded derivatives (e) | ($ | 10.4 | ) | ($ | 4.8 | ) | $ | 8.3 | $ | 2.7 | ||||||
| Acquisition and divestiture related charges, net (f) | $ | 3.4 | $ | 3.0 | ($ | 0.7 | ) | ($ | 0.3 | ) | ||||||
| Business optimization project expenses (g) | $ | 5.2 | $ | 2.5 | $ | 1.5 | $ | 4.2 | ||||||||
| Plant closure expenses (h) | $ | 3.0 | $ | 2.4 | $ | 1.1 | $ | 1.7 | ||||||||
| Loss on extinguishment of debt (i) | $ | 30.2 | $ | 30.2 | ||||||||||||
| Professional services relating to Willowbrook and Atlanta facilities (j) | $ | 28.8 | $ | 25.4 | $ | 7.8 | $ | 11.2 | ||||||||
| Accretion of Asset Retirement Obligation (k) | $ | 2.1 | $ | 1.5 | $ | 1.5 | $ | 2.1 | ||||||||
| COVID-19 expenses (l) | $ | 2.4 | $ | 2.4 | ||||||||||||
| Income tax benefit associated with pre-tax adjustments (m) | ($ | 40.1 | ) | ($ | 24.9 | ) | ($ | 20.4 | ) | ($ | 35.6 | ) | ||||
| Adj. net income | $ | 89.6 | $ | 77.1 | $ | 87.9 | $ | 100.4 | ||||||||
| Interest expense, net (a) | $ | 210.4 | $ | 167.1 | $ | 114.5 | $ | 157.7 | ||||||||
| Depreciation (n) | $ | 63.9 | $ | 47.3 | $ | 50.1 | $ | 66.7 | ||||||||
| Income tax provision/(benefit) applicable to Adjusted Net Income (o) | $ | 37.3 | $ | 15.2 | $ | 33.0 | $ | 55.1 | ||||||||
| Adj. EBITDA | $ | 401.3 | $ | 306.8 | $ | 285.5 | $ | 379.9 |
9100 South Hills Boulevard, Suite 300,
Broadview Heights, OH 44147
440-262-1410 | soterahealth.com