CRISIL reaffirms credit rating of Biocon's bank facilities worth Rs250 crore; Stock up 1%

10 Mar 2022 , 09:15 AM

Biocon Limited informed the exchanges and investors that CRISIL Ratings, a credit rating agency, has assigned ‘CRISIL AA+’ rating to the long-term bank facilities of the company on ‘Rating Watch with Developing Implications. Whilst the rating on the short-term bank facilities has been reaffirmed at ‘CRISIL A1+’. The total bank facilities of the company are worth Rs250 crore.

On February 28, 2022, Biocon Biologics Ltd (BBL; a subsidiary of Biocon) announced that its Board of Directors announced the approval of the proposed acquisition of the biosimilar business of US-based Viatris Inc. Accordingly, BBL entered into a definitive agreement with Viatris Inc to acquire its biosimilars business for a total consideration of USD 3.335 billion, consisting of the cash up to USD 2.335 billion and compulsorily convertible preference shares (CCPS) in BBL of USD 1 billion.

The company will fund the upfront cash payment of USD 2 billion by ~USD 800 million raised through equity infusion in BBL and the balance will be funded by debt. The transaction is expected to be completed in the second half of the calendar year 2022, subject to certain regulatory approvals.

During early trade on Thursday, Biocon Ltd was trading at Rs341.65 per piece up Rs3.45 or 1.02% from its previous closing of Rs338.20 on the BSE.