Grifols could be negotiating €2 B capital hike; debt rose to 5.4x NFD/Ebitda end-2021

GrifolsPossible claim of €54- 274M does not affect Grifols' credit history

Bankinter | Grifols could be negotiating a 2 billion euros capital hike (c. 18% of its current capitalisation) with various funds. The objective is to cut its debt which is equivalent to 6.9x EBITDA, according to a daily newspaper.

Grifols’ share price took a hit this morning on the IBEX 35, falling as much as 13%.

Bankinter analyst team’s view:

Negative news. If this rumour is correct, the capital increase would be made at a discount to the current share price. One of our concerns is Grifols’ leverage (5.4x NFD/EBITDA at end-2021). This reflects an agressive acquisition strategy financed with debt.

In Q4 2021, after announcing the purchase of the German firm Biotest for 2 billion euros, the main rating agencies cut Grifols’ debt rating (Moody’s B1, with negative outlook from Baa3; S&P BB- with negative outlook from BB). We maintain a cautious outlook and leave our Target Price unchanged at 17 euros/share, reiterating our Neutral stance.

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