Riccardo Trecroce has been appointed chief executive officer of
Patheon, Inc. Mr. Trecroce was initially appointed to this position on an interim basis in September 2006.
"Since joining Patheon in 2000, Mr. Trecroce has played a key role in the development and execution of Patheon's business strategy," said Peter Green, chairman of Patheon. "Riccardo's in-depth knowledge of the company, strong client focus and vision are qualities that will serve Patheon well as we move forward to advance Patheon's positioning as a global leader in our sector."
Also, Patheon has entered into an agreement with J.P. Morgan Securities Inc. and GE Commercial Finance for new credit facilities to refinance its North American and UK debt. The refinancing is based on the completion of the $150 million convertible preferred share investment by JLL Partners Fund V, L.P., which is expected to close, together with the JLL Partners investment, by April 30th.
The new credit facilities total $225 million, comprising a seven-year $150 million term loan facility and a five-year $75 million revolving facility. The proceeds of the term facility, together with the proceeds of the JLL Partners investment, will be used to repay the company's obligations under its existing North American and U.K. credit facilities.
"Today's agreement with JPMorgan and GE Commercial Finance marks the next major milestone in our capital restructuring process," said John Bell, chief financial officer, Patheon. "With the investment by JLL Partners and the new long-term debt facilities, we will have the appropriate long-term financial structure in place to operate and grow our business effectively."
"The JLL investment and bank refinancing are important to the future of Patheon and represent the culmination of an extensive strategic and financial alternatives review process undertaken over the past six months," said Mr. Trecroce.
The Toronto Stock Exchange has granted approval for the issuance of the convertible preferred shares to JLL Partners. However, the TSX requires Patheon's common shareholders have the right to elect six of the nine members of Patheon's board of directors, but will not be entitled to vote to elect the three directors who will be JLL Partners' representatives under the terms of the agreement.
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