Finance

Orexo AB Sets Stage for New Senior Secured Social Bonds and Invites Bondholders to a Tender Offer

UPPSALA, Sweden, March 8, 2024 – Orexo AB (publ), a distinguished leader in the pharmaceutical field, has set the financial world abuzz by announcing its decision to coordinate a series of fixed income investor meetings starting March 11, 2024. The company has entrusted ABG Sundal Collier and Carnegie Investment Bank as the joint arrangers and bookrunners to commence this pivotal exploration into the issuance of new senior secured callable floating rate social bonds. The anticipated amount is set at an impressive SEK 500,000,000 with a tenure of four years, an ambitious move dubbed the "New Social Bonds."

The success of this endeavor is contingent upon prevailing market conditions, which may subsequently lead to a capital markets transaction. The net proceeds of the New Social Bonds, once issued, are slated for utilization in line with principles stipulated in Orexo's social financing framework. This includes the ambitious goal of refinancing the company's existing senior unsecured callable floating rate bonds worth SEK 500,000,000 due for maturity in February 2025 (ISIN SE0015193958), among other investments approved under the framework.

Alongside the potential issue of the New Social Bonds, Orexo has simultaneously extended an invitation to current holders of the Existing Bonds. This Tender Offer is a proposition for them to tender their bonds in full or part, for purchase by the company, at an enticing rate of 100.750 percent of the nominal amount. This also includes accrued and unpaid interest. The definitive conclusion of the Tender Offer will, however, be tied to the successful issue of the New Social Bonds, and are bound by the details in the Tender Information Document released on March 8, 2024.

The document in question offers a wealth of detail and is readily accessible on Orexo's website, an insightful resource for investors and stakeholders alike. It details that the Tender Offer possesses an expiration deadline no later than 16.00 CET on March 14, 2024. However, this date remains flexible and subject to alteration at the company's discretion based on the pricing date of the New Social Bonds, which is yet to be announced.

Settlement of this Tender Offer is projected to materialize approximately ten business days following the Expiration Date. Of particular interest to investors is Orexo’s strategy in the allocation of the New Social Bonds. The company has disclosed its intention to take into account an investor's earlier tendering of the Existing Bonds during the New Social Bonds allocation process. However, this remains at the company's sole discretion and within the covenants specified in the Tender Information Document.

In the event that the issuance of the New Social Bonds meets with success and the necessary proceeds are received, Orexo anticipates implementing an early redemption plan. This plan will cater to the Existing Bonds not surrendered in the Tender Offer, adhering strictly to the terms and conditions already laid out for the Existing Bonds. The redemption price is set to mirror the offer made in the Tender, reflecting a rate of 100.750 percent of the nominal value in addition to any accrued and unpaid interest.

In preparation for the anticipated issuance of the New Social Bonds and to facilitate the Tender Offer, the esteemed legal advisory firm Gernandt & Danielsson Advokatbyrå KB has been appointed. This evidences Orexo’s commitment to due diligence and its adherence to top-tier legal and ethical standards throughout this financing exercise.

For those looking for further details or insights, Orexo has made it known that the team is approachable and willing to communicate. The President and CEO, Nikolaj Sørensen, alongside the Executive Vice President and CFO, Fredrik Järrsten, and Lena Wange, the IR & Communications Director, are available for inquiries. They can be reached at the main line +46 (0)18 780 88 00, or via email at [email protected] for a direct correspondence route.

Pioneering Solutions: Orexo's Vision in the Pharmaceutical Industry

Delving into the core of Orexo, the company emerges as an innovative Swedish pharmaceutical organization with a rich 25-year history of developing sophisticated pharmaceuticals. Orexo's formulation technologies have been consistently tailored to address substantial medical necessities.

The U.S. market benefits significantly from Orexo's prowess, as they contribute cutting-edge treatments for individuals grappling with opioid use disorders and related medical conditions. The company's global appeal is strengthened through the strategic alliance with notable partners, aimed at advancing and commercializing products targeting various therapeutic sectors.

The past financial year stood as a testament to Orexo's success, with net sales reaching an electrifying SEK 639 million and a dedicated workforce of 116 employees. The pharmaceutical leader proudly trades on the Nasdaq Stockholm's main list and offers ADRs on the US OTCQX Market under the ticker symbol ORXOY.

To explore more about Orexo and its impact, interested parties are encouraged to visit the company's website at www.orexo.com. Additional engagement with the company can be had through platforms such as Twitter, LinkedIn, and YouTube, where it maintains a dynamic presence.

The announcement was officially made public on March 8, 2024, at 8.10 CET by the designated contact person. This distribution was facilitated by Cision and can be referenced at http://news.cision.com.

The complete announcement from Orexo including the intricate details of the contemplated issuance of the senior secured callable floating rate social bonds along with the tender offer can be reviewed at https://news.cision.com/orexo/r/orexo-contemplates-issuance-of-senior-secured-callable-floating-rate-social-bonds-and-announces-a-co,c3942854.

In tandem with the news, Orexo has made available for download the Tender Information Document dated March 8, 2024. Interested stakeholders can acquire this critical documentation via the following link: https://mb.cision.com/Main/694/3942854/2656320.pdf titled "Orexo - Tender Information Document (8 Mar 2024)." This document is key for comprehending the intricate aspects of the tender offer and presents Orexo's stringent adherence to transparent communication practices.

The Future Outlook for Orexo and Its Stakeholders

As Orexo propels towards this ambitious financial restructuring, the market awaits with keen interest. The success of these undertakings is poised to not only refinance the company's existing bond obligations but also bolster its capacity to engender strategic acquisitions and investments under its social financing mandate.

Stakeholders including current bondholders, potential investors, and partners are now privy to the significant strides Orexo is making towards fortifying its financial health. Through the issuance of the New Social Bonds and the well-orchestrated Tender Offer, Orexo reinforces its resolve to sustain innovation, drive growth, and continue delivering solutions that resonate with the needs of a challenging healthcare landscape.

Orexo's meticulous approach to this multifaceted financial maneuver reflects its strategic planning and commitment to its social financing goals. The impact of these initiatives is likely to resonate well beyond the financial markets, as they underscore the company's resolve to contribute positively to societal well-being.

The announcement culminates in the reaffirmation of Orexo's steadfast dedication to delivering high-quality pharmaceutical products and treatment solutions. As the company continues to navigate the complexities of the global health sector, its financial acumen and strategic initiatives like these are sure to underscore its status as a leading force in the pharmaceutical industry.

As Orexo embarks on this exciting new chapter in its financial journey, all eyes will be on how these market maneuvers translate into tangible results both for the company and its stakeholders. The realization of Orexo's vision for innovation in pharmaceuticals, its impact on addressing key medical needs, and the success of its social bonds will play a crucial role in shaping the company's future trajectory. The days ahead promise to be eventful for Orexo AB as it navigates towards a horizon of opportunity and sustained growth.