Biogroup - comment

BioGroup completed its refinancing and debt extension on May 22nd, elevating the sub bonds at 97.5% to senior secured status and extending all maturities to 2031. Operationally, BioGroup continues to improve EBITDA margins, and while we have consistently discounted its so-called leverageable EBITDA, the reported growth reflects the delivery of tangible cost savings underlying those adjustments. Revenue was marginally higher, driven by increased volumes. Management continues to target a further €54m of future savings, implying adjusted leverage of 5.7x, while pro forma leverage stands at around 6.3x without adjustments. Both BioGroup and Cerba remain in a wait-and-see mode pending the outcome of the French government review on future pricing, volumes and regulatory measures.