Immucor EBITDA and revenue decline in fiscal 2Q19

Immucor EBITDA and revenue declined year over year in 2Q19, according to two sources familiar with the matter. The company will host an investor call at 2pm today to discuss the results, one of the sources added.

The transfusion and transplantation products maker disclosed USD 30.9m of EBITDA for the quarter, down 15% year-over-year. The company reported USD 32.3m of EBITDA, down 14% from USD 37.6m for the corresponding period, excluding a quarterly cash injection the borrower made to biotech spinoff Sentilus Holdco.

Immocor’s revenues for the quarter totaled USD 92.6m, down 5%, driven by a decline in sales in the transfusion division, the sources said. On a like-for-like basis, revenue ticked down 1% for the quarter due to fewer shipment days in the quarter, another source said.

The results left the TPG Capital-owned company levered roughly 7.8x, based on LTM EBITDA of around USD 136.5m and USD 1.06bn of total debt, according to the sources.

The company bought biotech company Sentilus in 2014 and then spun it off in 2016. Immucor now holds a management service agreement with Sentilus requiring Immucor to fund Sentilus’ research and development. Relatedly, sponsor TPG infused a USD 13m cash injection into Sentilus last year.

“The fact that TPG is putting in money should make people less concerned about the Sentilus add-back. We think that TPG will continue to support them,” one of the sources said.

As of 30 November, Immucor’s liquidity stood at roughly USD 43m, with USD 38m of revolver availability on its USD 70m revolving credit facility due 2020 and around USD 5m in cash, the sources said.

The company’s debt structure includes USD 390m 11.125% senior unsecured notes due 2022, a USD 625m L+500bps (1% floor) first lien term loan due 2021 and two smaller USD 6m term loans due 2019 and 2020, according to one of the sources.

The notes last traded yesterday at in the 101/102 context, in line with recent levels, the sources said. The revolver was last quoted in the 98.18/99.18 context today, down from the 99.805/99.555 context before the earnings report, according to Markit.

TPG Capital declined to comment. The company did not respond to a request for comment.

2019 Debtwire

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