K-V Pharmaceutical Company today said that it has emerged from bankruptcy and unveiled a $375m recapitalisation plan.
The recapitalisation package includes a $100m credit facility and a $275m rights offering and purchase of new shares.
The majority of the funding came from Capital Ventures International, Greywolf Capital, Kingdon Capital, Deutsche Bank and Silver Point Finance.
Under the terms of the deal, KV’s existing senior secured notes will be paid in cash in full and unsecured creditors will receive a pro rata share of $10.75m. Existing convertible subordinated noteholders will receive 7% of KV’s new common shares and any securities acquired via the rights offering or share purchase.
All existing preferred and common stock has been cancelled, the company added.
KV CEO Greg Divis said, “As KV emerges from chapter 11 today, we are a stronger, better capitalized, and more competitive company with a solid financial foundation for future growth.
“We deeply appreciate the support from our new investors and partners as we continue to execute on advancing women’s health with our well-established portfolio of FDA-approved medications and focus, first and foremost, on our commitment to patients.”
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