Shareholders back Trinity Biotech refinancing deal

Company plans to enter a $81.25m loan facility to buyout loan notes worth $99.9m

The Nasdaq-listed company is headquartered in Bray, Co Wicklow

The Nasdaq-listed company is headquartered in Bray, Co Wicklow

 

Shareholders in Irish-founded medical diagnostics company Trinity Biotech have backed a plan to enter into a $81.25 million (€72 million) loan facility to refinance loan notes valued at $99.9 million.

The company, which is headquartered in Bray, Co Wicklow, said in December it had reached agreement with five institutions that hold 99 per cent of convertible loan notes senior notes where they would be paid 87cent on the dollar, with a further eight cent on the dollar exchanged for Trinity Biotech shares.

The Nasdaq-listed biotech company has agreed the refinancing deal with New York-based hedge fund Perceptive Advisors for the notes, which have a maturity date of 2045.

The deal with Perceptive, would see the notes being refinanced at an interest rate of 11.25 per cent.

According to a report in the Sunday Independent, Trinity’s chairman, chief executive and co-founder Ronan O’Caoimh had warned shareholders in a letter prior to the company’s EGM on Tuesday that it would be subject to “major insolvency risk” if they did not back the plan.

Debt

Trinity said prior to the EGM that its plan would reduce gross debt by $19 million and could allow it make further savings by repaying in part or in full, the loan prior to the end of the four-year term.

Shareholders approved all of the four resolutions put to the meeting, with each resolution being backed by at least 97 per cent of votes cast.

Trinity Biotech develops, manufactures and markets diagnostic systems for the point-of-care and clinical laboratory segments of the diagnostic market. Its products, which include screening tests for HIV and Covid-19 antigen tests, are sold in more than 110 countries.

The company recorded $102 million in revenues for fiscal 2020 with pretax profits totalling $15.5 million. Trinity is due to announce 2021 figures in March.