presented by October Spain
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Pozuelo de Alarcón, Spain
Created in 1948, Labiana Life Sciences S.A., is active in the pharma sector. The company, managed by Manuel Ramos Ortega, has 150 employees and is based in Madrid. The company is part of Seven Pharma Group together with a company called Labiana Pharmaceuticals that is engaged in the human health sector.
Mr. Manuel Ramos Ortega, managing director, has overall 20 years of professional experience in the sector.
The Labiana Life Science’s main activity is:
The company works with a relatively concentrated customer base and is present in 40 countries.
The company requests a loan of 2.200.000 € over 48 months with 6 months of deferred repayment to finance the acquisition of a new production plant in Eastern Europe. This project will be realised next month.
This project is a Flexible Bridge Loan, an amortizable loan with a standard commitment for the first 9 months and the possibility of early repayment at no cost for the remainder of the loan term, even in the event of refinancing by other financial institutions.
This project is a medium-term loan with a capital amortisation deferment and as such presents a different method of capital repayment than standard projects. The first 6 months, the lenders will only receive interest; the following 42 months, the lenders will receive interest and principal amortization.
This principal repayment profile matches the borrower’s financing needs while allowing lenders to earn a higher amount of interest.
The amount offered on the platform is limited to 1.000.000€, which is in line with the regulatory limits.
The borrower is the main operating company representing 50% of the group’s turnover and 50% of the profitability. The financial analysis was carried out on the consolidated financial statements, which reflects the group’s performance.
With a turnover of 38.315.797 € in 2017 and an experienced team, the group has a good track record combined with a strong operating margin.
Increasing level of sales during the last year associated to the increasing number of customer and sales with the current and loyal customer base The forecast is based on the performance in 2018 where the company reported a 42.775.643 € turnover and profits of 978.106 €
The group has a good repayment capacity with a forecast FCCR (Fixed Charge Cover Ratio *) at 1,33 and a strong financial structure, with a forecast net debt / ebitda ratio of 4,38 and a net debt / shareholder equity of 71%.
Bonds have been considered as quasi equity as there will be repaid after the October’s loan.
The analysis of the project leads to a credit rating of B+ and a 5,5% annual interest rate.
*The multiple of FCCR at 1,33 means that the company has a safety margin of 33% relative to its ability to repay its credit maturities.
The expert opinion is given as an indication on the basis of the elements provided by the project holder and information from our databases (External data provider). This opinion is only an element of reflection in the decision making of a lender to participate in the financing of a project.
Points of caution: