Global pharmaceutical leader Sandoz has significantly bolstered its financial standing by implementing a new multi-currency revolving credit facility (RCF) worth USD 2 billion. This initiative replaces the previous unutilized USD 1.25 billion RCF established in 2023. Additionally, Sandoz has successfully issued dual-tranche CHF 400 million and single-tranche EUR 500 million bonds. These actions have enabled the company to fully repay USD 750 million equivalent in USD and EUR term loans, extending debt maturities until 2035 while reducing overall interest expenses.
Based in Basel, Switzerland, Sandoz announced these developments on March 31, 2025. The repayment of the term loans was financed through proceeds from three successful bond transactions conducted earlier in the month. On March 13, Sandoz launched a three-year CHF 165 million and an eight-year CHF 235 million bond with annual coupons set at 1.25% and 1.75%, respectively. Four days later, the company issued a single-tranche EUR 500 million bond with a tenor of 10 years and an annual coupon rate of 4.0%. The latter transaction was particularly well-received, achieving a six-times oversubscription of the final orderbook, marking the highest oversubscription rate ever achieved by Sandoz for a single tranche.
Remco Steenbergen, CFO of Sandoz, highlighted that these transactions will not only fortify the company's balance sheet but also provide substantial financial flexibility moving forward. Since gaining independence, Sandoz has constructed a robust maturity profile, significantly cutting financing costs. As a result, the company anticipates reducing its annual interest rate on gross debt to below 4%. Following the repayment of existing term loans and the establishment of new bonds, the debt-maturity profile of Sandoz now extends to 2035, with an average maturity of approximately 5.5 years.
A core banking group supported these transactions, including prominent institutions such as Bank of America, BNP Paribas, Citi, Deutsche Bank, HSBC, Mizuho, SEB, Societe Generale, and UBS. The new RCF offers a five-year maturity period with the option to extend twice by another year each time. This facility replaces the previous unutilized USD 1.25 billion RCF established in 2023. Furthermore, Sandoz aims to consistently uphold an investment-grade credit rating, currently rated Baa2 (stable outlook) by Moody’s and BBB (stable outlook) by S&P.
Through these strategic financial maneuvers, Sandoz demonstrates its commitment to maintaining strong financial health and ensuring long-term stability. By extending debt maturities and reducing interest expenses, the company positions itself favorably for future growth and innovation within the global pharmaceutical market. These measures reflect Sandoz's dedication to pioneering patient access while generating significant healthcare savings globally.
