Clarivate PLC, a global leader in information services, has announced the successful completion of the refinancing of its term loan B credit facility and the extension of the maturity date of its revolving credit facility. The company refinanced all of its existing term loans with a new $2.150 billion tranche of term loans maturing in 2031, effectively extending the maturity of the existing term loans by approximately 5 years. Additionally, the revolving credit facility was refinanced with a replacement $700 million facility, extending its maturity from 2027 to 2029.
Jonathan Collins, Executive Vice President and Chief Financial Officer, expressed satisfaction with the outcome, stating, "We are pleased with the positive outcome of extending the maturity of our term loan and lowering our annual cash interest costs. The oversubscribed interest in the recent offering is a testament to our solid credit profile and strong cash flow generation."
The company's shares have responded to this news by moving 1.9% and are currently trading at a price of $9.11.
Clarivate PLC is a leading global information services provider, connecting people and organizations to intelligence they can trust to transform their perspective, their work, and the world. The company's subscription and technology-based solutions, combined with deep domain expertise, cover the areas of academia & government, intellectual property, and life sciences & healthcare.
The company's full 8-K submission is available here.
| 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | |
|---|---|---|---|---|---|---|
| Revenue (MM) | $968 | $974 | $1,254 | $1,877 | $2,660 | $2,620 |
| Revenue Growth | n/a | 0.61% | 28.71% | 49.66% | 41.71% | -1.48% |
| Operating Margins | -11% | -8% | -3% | -5% | -148% | 14% |
| Net Margins | -25% | -27% | -28% | -14% | -149% | 10% |
| Net Income (MM) | -$242 | -$259 | -$351 | -$270 | -$3,960 | $256 |
| Net Interest Expense (MM) | $122 | $158 | $112 | $252 | $270 | $296 |
| Depreciation & Amort. (MM) | $237 | $9 | $13 | $14 | $710 | $716 |
| Earnings Per Share | -$1.11 | -$0.94 | -$0.82 | -$0.41 | -$5.84 | $0.38 |
| EPS Growth | n/a | 15.32% | 12.77% | 50.0% | -1324.39% | 106.51% |
| Diluted Shares (MM) | 217 | 274 | 427 | 655 | 679 | 671 |
| Free Cash Flow (MM) | -$72 | $48 | $156 | $205 | $306 | $465 |
| Capital Expenditures (MM) | $45 | $70 | $108 | $118 | $203 | $225 |
| Current Ratio | 0.63 | 0.76 | 0.81 | 0.86 | 0.89 | 0.94 |
| Total Debt (MM) | $2,051 | $1,647 | $3,515 | $5,487 | $5,006 | $4,866 |
| Net Debt / EBITDA | 15.4 | -21.42 | -138.03 | -69.26 | -1.45 | 4.11 |
Clarivate Plc has rapidly growing revenues and increasing reinvestment in the business, generally positive cash flows, and positive EPS growth. However, the firm suffers from not enough current assets to cover current liabilities and a highly leveraged balance sheet. Finally, we note that Clarivate Plc has weak operating margins with a positive growth rate.
