- Sterilization solutions company Sotera Health ( NASDAQ: SHC ) reaffirmed its FY22 revenue expectations and said it intends to enter into a new $425M senior secured term loan B facility.
- The proceeds from the debt financing, expected to fund and close in Q1, along with cash on hand, is expected to be used to fund a previously announced planned $408M ethylene oxide litigation settlement in Cook County, IL; pay down existing borrowings under the company's revolving credit facility and further enhance liquidity.
- On FY22 guidance, SHC said it expects net revenues to be within the range of $995M to $1.005B, vs. consensus of $1.00B.
- Also, FY22 net loss is expected to be in a range of $226M to $236M, which includes a $408M legal reserve recorded in Q4. The legal reserve is related to the binding term sheets to settle 870+ ethylene oxide claims in Cook County, IL, subject to the satisfaction or waiver of the various conditions set forth in the term sheets.
- Adjusted EBITDA will be in the guidance range of $500M to to $510M.
- Source: Press Release
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Sotera Health reaffirms FY22 guidance, intends to enter into $425M debt financing