Concordia International Group

• 10/20/17 Recap: Canadian-based pharmaceutical company filed for a stay under the Canada Business Corporations Act (CBCA) to effectuate a plan to de-lever its balance sheet. The company has a portfolio of 200+ "off-patient" skus with sales all across the world. The company blamed the need for the filing on (i) the proliferation of competitive generic products, (ii) the introduction of new products that treat the same ailments Concordia addresses, (iii) drug pricing pressures (including regulatory pressures in the UK), and its highly-levered balance sheet. The company intends to deploy its "DELIVER" strategy - not to be confused with what should be an obvious DELEVER strategy, but we digress. This acronym stands for a bunch of trite stuff like "Drive growth, "Expand," "Level-set the U.S. Business," "Increase the Product Pipeline," blah blah boring blah blah. In other words, effectively operate a pharma business - the EOPB strategy. Fine, not quite the same ring to it. 
• Jurisdiction: Superior Court of Ontario
• Capital Structure: $1.068b secured term loan, £485.63mm secured term loan. $350mm 9% '22 senior secured first lien notes, $135mm 9.5% '22 extended unsecured bridge loan ($100.83 funded ex-interest), $45mm 9.5% '17 equity unsecured bridge loan ($33.61mm ex-interest), $735mm 7% '23 unsecured notes (ex-interest), and $790mm 9.5% '22 unsecured notes (ex-interest)(US Bank NA). Public equity ($CXR).     
• Company Professionals:
  • Legal: Skadden Arps Meagher & Flom LLP (Paul Leake, Shana Elberg) & (Canadian) Goodmans LLP (Robert Chadwick, Brendan O'Neil, Caroline Descours, Ryan Baulke)
  • Financial Advisor: Perella Weinberg Partners LP
• Other Parties in Interest:
  • Secured Term Loan Agent: Goldman Sachs Bank USA
    • Legal: Davis Polk & Wardwell LLP (Damian Schaible)
  • Secured Debtholders Committee
    • Legal: White & Case LLP & (Canadian) Osler Hoskin & Harcourt LLP (Marc Wasserman, Martino Calvaruso)
  • Trustee for Secured and Unsecured Notes: US Bank NA
  • Unsecured Debtholders Committee
    • Legal: Paul Weiss Rifkind Wharton & Garrison LLP & (Canadian) Bennett Jones LLP (Kevin Zych, Sean Zweig)

Updated 10/26/17