TORONTO, March 28 /CNW/ - Patheon Inc. announced today that it has
entered into an agreement with J.P. Morgan Securities Inc. ("JPMorgan") and GE
Commercial Finance for new credit facilities to refinance portions of its
existing North American debt and its U.K. debt. The refinancing is conditional
on the completion of the previously announced $150 million convertible
preferred share investment by JLL Partners Fund V, L.P., and is expected to
close, together with the JLL Partners investment, on or before April 30, 2007.
The new credit facilities are in the aggregate amount of US$225 million,
comprising a seven-year US$150 million term loan facility and a five-year
US$75 million revolving facility. The proceeds of the term facility, together
with the proceeds of the JLL Partners investment, will be used to repay the
Company's obligations under its existing North American and U.K. credit
"Today's agreement with JPMorgan and GE Commercial Finance marks the next
major milestone in our capital restructuring process," said John Bell, Chief
Financial Officer, Patheon Inc. "With the investment by JLL Partners and the
new long-term debt facilities, we will have the appropriate long-term
financial structure in place to operate and grow our business effectively."
"The JLL investment and bank refinancing are important to the future of
Patheon and represent the culmination of an extensive strategic and financial
alternatives review process undertaken over the past six months," said
Riccardo Trecroce, Chief Executive Officer of Patheon Inc.
Patheon also announced that the Toronto Stock Exchange has granted
conditional approval for the issuance of the convertible preferred shares to
JLL Partners. As a condition of its approval, the TSX is requiring that
Patheon's common shares be renamed "restricted voting shares", to reflect that
common shareholders will have the right to elect six of the nine members of
Patheon's Board of Directors, but will not be entitled to vote to elect the
remaining three directors who will be JLL Partners' representatives under the
terms of the agreement. This change does not affect the number of shares
outstanding, the terms and conditions of the outstanding shares or their
listing and trading on the TSX.
Patheon is seeking approval of the JLL Partners investment at its
upcoming shareholders' meeting on April 19, 2007. The management proxy
circular for the meeting is being mailed to shareholders this week and also is
available on Patheon's web site at www.patheon.com.
This news release contains forward-looking statements which reflect
management's expectations regarding the Company's future growth of operations,
performance (both operational and financial) and business prospects and
opportunities. Although management believes that the expectations reflected in
such forward-looking statements are reasonable, such statements involve risks
and uncertainties. Actual results may differ materially from those expressed
or implied by such forward-looking statements. Factors that could cause actual
results to differ materially from expectations include, but are not limited
to, currency fluctuations, the level of outsourcing services required by the
pharmaceutical companies (and in particular our clients), the impact of
changes in pharmaceutical development and manufacturing regulations and
general economic and market factors (including inflation and changes in laws)
and other factors discussed in materials filed with applicable securities
regulatory authorities from time to time.
Patheon (TSX:PTI; www.patheon.com) is a leading global provider of drug
development and manufacturing services to the international pharmaceutical
industry. Patheon operates a network of 14 facilities in the United States,
Canada and Europe, employing more than 5,300 people and serving a client base
of 250 pharmaceutical and biotechnology companies.
For further information:
For further information: Mr. Riccardo Trecroce, Chief Executive Officer,
Tel: (905) 812-6877, Fax: (905) 812-6613, Email: firstname.lastname@example.org; Mr.
John Bell, Chief Financial Officer, Tel: (905) 812-6812, Fax: (905) 812-6613,
Email: email@example.com; Ms. Shelley Jourard, Director, Corporate
Communications, Tel: (905) 812-6614, Fax: (905) 812-6613; Email: