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Sotera Health Confirms Preliminary 2022 Full-Year Guidance in Conjunction with Incremental Debt Financing
CLEVELAND, Feb. 13, 2023 (GLOBE NEWSWIRE) -- Sotera Health Company (“Sotera Health” or the “Company”) (NASDAQ: SHC), a leading global provider of
About this update from Sotera Health Company
[{"type":"text","content":"CLEVELAND, Feb. 13, 2023 (GLOBE NEWSWIRE) -- Sotera Health Company (“Sotera Health” or the “Company”) (NASDAQ: SHC), a leading global provider of mission-critical end-to-end sterilization solutions, lab testing and advisory services for the healthcare industry, today announced its intention to enter into a new senior secured Term Loan B facility in an aggregate principal amount of $425 million, which is expected to fund and close during the first quarter. The Company plans to use proceeds of this debt financing, along with cash on hand, to: a) fund a previously announced planned $408 million ethylene oxide litigation settlement in Cook County, IL, b) pay down existing borrowings under the Company’s revolving credit facility, and c) further enhance liquidity. Preliminary Financial Results for the Year Ended December 31, 2022 Our financial statements for the year ended December 31, 2022 are not yet complete. Accordingly and related to this incremental debt financing, we are presenting preliminary estimates of certain financial information that we expect to report on February 28, 2023 for the year ended December 31, 2022. The following information is based on our internal management accounts and reporting as of and for the year ended December 31, 2022, as compared to our audited results for the year ended December 31, 2021. Given the timing of these estimates, we have not completed our customary financial closing and review procedures but are making these estimates available to facilitate the incremental debt financing. The Company is reaffirming its expectation that 2022 full-year net revenues will be within the previously announced guidance range of $995 million to $1.005 billion. The Company also is announcing that the 2022 full-year net loss is expected to be in a range of $226 million to $236 million, which includes a $408 million legal reserve recorded in Q4 2022 related to the binding term sheets to settle 870+ ethylene oxide claims in Cook County, IL, subject to the satisfaction or waiver of the various conditions set forth in the term sheets. Full-year Adjusted EBITDA will be in the previously announced guidance range of $500 million to $510 million. Adjusted EBITDA is a non-GAAP financial measure; a reconciliation of Adjusted EBITDA to its most closely comparable GAAP figure is included at the end of this release. The pre...