Concordia International (CXRX) Exercises Option to Defer Half of Earn-Out; Will Continue to Review Alternatives
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Concordia International Corp. (NASDAQ: CXRX) exercised an option to defer half of the anticipated £144 million earn-out obligation due to Cinven1 and the other sellers of Concordia's International segment, to February 1, 2017.
"Our decision to defer £72 million of the earn-out reflects Cinven's continued support for Concordia and provides the Company with greater flexibility to manage its obligations," said Mark Thompson, Chairman and Chief Executive Officer of Concordia.
Concordia expects the first payment of £72 million will be paid to Cinven and the other sellers of Concordia's International segment on or about December 19, 2016, followed by a payment of approximately £73.4 million (which includes a financing charge of up to £1.4 million) on or before February 1, 2017. Concordia intends to use cash on hand generated by its International segment to make the first payment of £72 million.
Update on review of strategic alternatives
The Company continues to evaluate its strategic alternatives including, but not limited to, various capital markets financing options. There can be no assurance that any transaction will occur. Concordia does not intend to make any additional comments at this time regarding various strategic alternatives potentially available to the Company.
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