Grifols SA: October 5, 2021 Grifols closes its € 2 billion bond issue to finance its investment in Biotest

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Grifols closes its € 2 billion bond issue

to finance its investment in Biotest

  • The issue, launched on September 27, 2021, closed in record time following the positive reaction of financial investors
  • Investors recognize Grifols’ strong market position, robust business model and ability to generate operating cash flow, as well as the important added value of the Biotest transaction
  • Strong the oversubscription led to better pricing resulting in an effective cost of 3.9% through a bond of € 1.4 billion at 3.875% and an obligation equivalent to € 600 million at 4.75%, all two with maturities of 7 years
  • Grifols expects its leverage ratio to fall below 3.5x by 2024

Barcelona, ​​October 5, 2021.- Grifols (MCE: GRF, MCE: GRF.P, NASDAQ: GRFS) has closed its senior unsecured bond issue for the equivalent of 2 billion euros to finance its investment in Biotest AG.

The issue, launched on September 27, 2021, closed in record time following the positive reaction from financial investors, who recognize and appreciate the unique and transformational opportunity that the Biotest investment represents for Grifols. This response also confirms the market’s confidence in Grifols’ business model.

The issue is divided into two tranches: a tranche of 1.4 billion euros and a coupon rate of 3.875%, and a tranche in US dollars, equivalent to 600 million euros and a coupon rate of 4, 75%. Both have 7-year maturities, expiring in October 2028.

Alfredo Arroyo, CFO of Grifols is pleased with the market reaction: “The response from investors underscores their level of confidence in the growth of Grifols. Demand is seven times the amount issued in dollars and nearly double the amount issued in euros, which allows us to improve the effective price of the issue to 3.9%. ”

The proceeds from the bonds will be used to finance the acquisition of € 1.1 billion of the entire share capital of Tiancheng (Germany) Pharmaceutical Holdings AG, which holds 89.88% of the ordinary shares of Biotest AG and 1, 08% of the preferred shares.

In addition, the proceeds will also be used to finance the voluntary takeover bid for the remaining ordinary and preferred shares of Biotest AG.

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BofA Securities acted as sole underwriter and sole bookrunner for the bond issue.

Summary of installments and modalities:

Slice

Rising

Coupon

Emission

Maturity

euros

1.4 billion euros

3.875%

Au pair

October 2028

USD

600 million euros

4.750%

Au pair

October 2028

(equivalent)

Grifols has retained the services of Osborne Clarke, SLP and Proskauer Rose, LLP as legal counsel.

Biotest: an additional investment to boost Grifols performance

Founded in 1946, Biotest AG is a global company listed on the Frankfurt Stock Exchange specializing in innovative solutions for hematology and clinical immunology. Based in Dreieich (Germany), it develops, produces and markets biological drugs with applications in hematology, clinical immunology and intensive care.

The company’s current portfolio includes 12 different products with a global commercial footprint in over 90 countries. Biotest employs 1,928 people worldwide.

Biotest AG has a manufacturing capacity of up to 1.5 million liters of plasma per year, which it plans to double through the Biotest Next Level project. Its network of plasma centers includes 26 European centers located in Germany, the Czech Republic and Hungary.

In 2020, Biotest AG achieved a turnover of 484 million euros and an adjusted EBITDA of 108 million euros.

This acquisition will enhance the growth and profitability of Grifols and strengthen its position in the plasma-derived drug industry by accelerating and expanding its product portfolio.

Once the acquisition of Biotest is finalized, Grifols expects combined revenues to reach over € 7 billion and EBITDA to over € 2 billion, and achieve an EBITDA margin of over € 30. % by 2024. All of this will contribute to a rapid and gradual reduction in its debt ratio below 3.5x by 2024.

Grifols remains committed to achieving its debt reduction objective and will use all available means to achieve it. The company does not intend to continue with significant M&A or cash dividend transactions until the leverage is less than 4x.

Investor contact:

Investor Relations and Sustainability

[email protected] [email protected] [email protected] [email protected]Phone. +34 93 571 02 21

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Media contacts:

Raquel Lumbreras

Grifols

[email protected]

Borja Gomez

Media Press Office

[email protected]

[email protected]

Duomo Communication – Grifols press office

Phone. +34 571 00 02

Phone. +34 91 311 92 89 – 91 311 92 90

+34 659 57 21 85 / +34 650 40 22 25

About Grifols

Grifols is a global healthcare company founded in Barcelona in 1909, committed to improving the health and well-being of people around the world. Its four divisions – Bioscience, Diagnostics, Hospital and Bio Supplies – develop, produce and market innovative solutions and services which are sold in more than 100 countries.

Pioneers in the plasma industry, Grifols operates a growing network of donation centers around the world. It transforms the collected plasma into essential medicines to treat rare, chronic and sometimes fatal diseases. As a recognized leader in transfusion medicine, Grifols also offers a comprehensive portfolio of solutions designed to improve the safety of donation to transfusion. In addition, the company provides tools, information and services that enable hospitals, pharmacies and healthcare professionals to effectively deliver specialized medical care.

Grifols, with nearly 24,000 employees in 30 countries, is committed to a sustainable business model that sets the standard for continuous innovation, quality, safety and ethical leadership.

In 2020, Grifols’ economic impact in its main countries of operation was 7.5 billion euros. The company

also generated 140,000 jobs, including indirect and induced jobs.

The company’s Class A shares are listed on the Spanish Stock Exchange, where they are part of the Ibex-35 (MCE: GRF). Grifols Class B non-voting shares are listed on the Mercado Continuo (MCE: GRF.P) and on the US NASDAQ via ADRs (NASDAQ: GRFS).

For more information on Grifols, please visit www.grifols.com

LEGAL DISCLAIMER

Facts and figures contained in this report which do not refer to historical data are “future projections and assumptions”. Words and phrases such as “believe”, “hope”, “anticipate”, “predict”, “expect”, “intend”, “should”, “will seek to achieve”, “it is estimated “,” to come “and similar expressions, as they relate to the Grifols group, are used to identify future projections and assumptions. These expressions reflect the assumptions, assumptions, expectations and forecasts of the management team at the time of writing, and these are subject to a number of factors which mean that actual results may differ materially. The future results of the Grifols group could be affected by events related to its own activities, such as a disruption in the supply of raw materials for the manufacture of its products, the appearance of competing products on the market, or changes in the market. regulatory framework of the markets in which it operates, among others. At the time of writing this report, the Grifols group has adopted the necessary measures to mitigate the potential impact of these events. Grifols, SA accepts no obligation to publish, revise or update future projections or assumptions to adapt them to events or circumstances subsequent to the date of writing of this report, unless expressly required by applicable law. . This document does not constitute an offer or an invitation to buy or subscribe for shares in accordance with the

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the provisions of the following Spanish legislation: Royal Legislative Decree 4/2015, of 23 October, approving the recast text of the Securities Market Law; Royal Decree Law 5/2005, of March 11 and / or Royal Decree 1310/2005, of November 4, and any regulations developing this legislation. In addition, this document does not constitute an offer to buy, sell or exchange, nor a request for an offer to buy, sell or exchange securities, nor a request for a vote or approval in any other jurisdiction. The information contained in this document has not been verified or reviewed by the external auditors of the Grifols group.

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Disclaimer

Grifols SA published this content on 05 October 2021 and is solely responsible for the information it contains. Distributed by Public, unedited and unmodified, on 05 October 2021 15:58:04 UTC.


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