Sotera Health reaffirms 2022 revenue view $995M-$1.005B, consensus $1B

Sotera Health Company announced its intention to enter into a new senior secured Term Loan B facility in an aggregate principal amount of $425 million, which is expected to fund and close during the first quarter. The Company plans to use proceeds of this debt financing, along with cash on hand, to: fund a previously announced planned $408 million ethylene oxide litigation settlement in Cook County, IL, pay down existing borrowings under the Company’s revolving credit facility, and further enhance liquidity. The Company is reaffirming its expectation that 2022 full-year net revenues will be within the previously announced guidance range of $995 million to $1.005 billion. The Company also is announcing that the 2022 full-year net loss is expected to be in a range of $226 million to $236 million, which includes a $408 million legal reserve recorded in Q4 2022 related to the binding term sheets to settle 870+ ethylene oxide claims in Cook County, IL, subject to the satisfaction or waiver of the various conditions set forth in the term sheets. Full-year Adjusted EBITDA will be in the previously announced guidance range of $500 million to $510 million.