Mumbai: Biocon Biologics is looking to pare another $300 million acquisition debt in the next one year, and will explore various options to achieve its plans, chairperson Kiran Mazumdar-Shaw told ET in an interview. "We have an acquisition debt, and we do need to reduce that debt by about $300 million in the next 12 months, which will put us in a strong financial position," said Mazumdar-Shaw. She declined to comment on whether the company will raise equity to reduce its debt, stating only that various options are being considered.
Biocon Biologics refinanced $1.1 billion debt last month, strengthening its financial position and giving more flexibility for managing debt in the future, she said. "It would have been very challenging to actually service the principal amount.
Now, this (debt refinance) gives us that time to build the business and then make sure that we can afford to pay up our acquisition debt," Mazumdar-Shaw said. Biocon Biologics refinanced $1.1 billion (Rs 9,347 crore) long-term debt through US five-year dollar bonds and new syndicated facility.
This included $800 million senior secured notes due 2029 at a coupon of 6.67%. The debt refinance helped save around 20-25 basis points in interest costs.
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