Gland Pharma Limited has announced the issuance of a corporate guarantee for its wholly-owned step-down subsidiary, Phixen SAS. This guarantee, in favour of MUFG Bank (Europe) N.V., is for a facility of up to Euro 50 million, with an initial draw-down limit of Euro 18 million. The guarantee secures a portion of this draw-down amount and related interest, with a validity until March 31, 2030.
Gland Pharma Extends Corporate Guarantee
Gland Pharma Limited has informed the stock exchanges about the issuance of a corporate guarantee on behalf of Phixen SAS, a wholly-owned step-down subsidiary. This action is in line with the company’s ongoing support for its international operations and subsidiaries.
Facility Details and Guarantee Amount
Phixen SAS has entered into an Uncommitted Revolving Facility Agreement with MUFG Bank (Europe) N.V. for an amount of up to Euro 50 million. An initial draw-down limit of Euro 18 million has been established under this facility. To secure this draw-down amount and associated interest, Gland Pharma has extended a Corporate Guarantee of Euro 20 million in favour of MUFG Bank.
The company retains the flexibility to extend the Corporate Guarantee should the draw-down limits for Phixen SAS increase in the future. Any such extension will be duly notified to the stock exchanges.
Validity and Financial Implications
The Facility Agreement is valid for a period of 3 years, and consequently, the Corporate Guarantee provided by Gland Pharma will be valid until March 31, 2030. This Corporate Guarantee will be recognized as a contingent liability on the Company’s balance sheet. In the event of Phixen SAS’s inability to repay the drawn amounts to MUFG Bank, Gland Pharma will be obligated to cover the draw-down amount along with the applicable interest.
It has been confirmed that neither the promoter nor the promoter group companies have any interest in this transaction, and it is conducted at an arm’s length basis.
Source: BSE
