Initiates Prearranged Financial Restructuring Process to Significantly Strengthen Balance Sheet
Operations Continue in the Ordinary Course, Including Full Continuity of OneTouch® Glucose Measurement and Management Offerings
MALVERN, Pa.–(BUSINESS WIRE)–LifeScan, Inc. (“LifeScan” or the “Company”), a world leader in blood glucose monitoring, today announced that it has entered into a Restructuring Support Agreement (“RSA”) with its first- and second-lien lenders and current equity sponsor, Platinum Equity, that will transform its balance sheet and position the Company for a stronger and more profitable future. As contemplated in the RSA, LifeScan expects to reduce more than 75% of its debt, which will enable the Company to accelerate strategic investments that will support the future of the business.
To implement the RSA as efficiently as possible, LifeScan filed voluntary petitions for prearranged chapter 11 cases in the United States Bankruptcy Court for the Southern District of Texas (the “Court”). LifeScan’s international subsidiaries are not included in the chapter 11 filing in the U.S. The Company expects to emerge from this process under the majority ownership of a group of the Company’s existing lenders, with whom it has had a longstanding and productive relationship. Importantly, the Company’s financial partners recognize the strong and growing potential of the glucose management industry, and through this process have committed their support for LifeScan’s go-forward strategy.
“This balance sheet restructuring will significantly strengthen LifeScan’s financial position, enabling us to continue serving more than 20 million customers across 50+ countries and put new growth strategies in place,” said Valerie Asbury, Chief Executive Officer of LifeScan. “LifeScan is always evolving to meet the needs of our valued customers. In the U.S., we will continue to take action to expand access to OneTouch® so consumers can continue to manage their health with our reliable and affordable products, without the need for a prescription. We recognize that our products are essential for people with diabetes to make life-sustaining decisions and are evolving our model to bring products and services to market through multiple channels. I am deeply grateful for the partnership of our lenders and sponsor and the unyielding commitment of our employees, which will enable us to become a stronger company and create a world without limits for people with diabetes.”
With a stronger financial foundation upon emerging from this process, LifeScan will be better positioned to invest in its global business. The Company will continue to prioritize product availability and superior customer service as it works proactively to become one of the most comprehensive players in the glucose management industry. As part of this effort, the Company intends to accelerate strategies in the U.S. market that offer both stronger economics and more predictable patient access.
LifeScan will continue to operate in the ordinary course of business during its chapter 11 cases and is focused on delivering on its commitments to customers, vendors, and employees. The Company has filed a number of customary “first day” motions which, upon approval by the Court, will enable LifeScan to continue operating as usual, including continuing to pay employee wages and benefits, maintaining customer programs, and honoring post-petition obligations to vendors. The Company expects to have the necessary liquidity to support operations during this process and anticipates emerging from chapter 11 by the end of the year.
Additional information is available through the Company’s claims agent, Epiq at https://dm.epiq11.com/LifeScan. Stakeholders with questions can contact Epiq by calling 888-832-9472 (U.S./Canada) or 971-318-6618 (International) or emailing lifescaninfo@epiqglobal.com.
Advisors
Milbank LLP and Porter Hedges LLP are serving as legal advisors, Alvarez & Marsal is serving as financial and restructuring advisor, PJT Partners LP is serving as investment banker, and C Street Advisory Group is serving as strategic communications advisor to the Company. Davis Polk & Wardwell LLP is serving as legal advisor and Houlihan Lokey is serving as investment banker to an ad hoc group of lenders that entered into the RSA.
About LifeScan
LifeScan is a global leader in blood glucose monitoring and digital health technology and has a vision to create a world without limits for people with diabetes. More than 20 million people and their caregivers around the world count on LifeScan’s OneTouch® brand products to manage their diabetes. Together, LifeScan and OneTouch® improve the quality of life for people with diabetes with products and digital platforms defined by simplicity, accuracy, and trust. For more information, please visit LifeScan.com.
Contacts
Media
C Street Advisory Group
lifescan@thecstreet.com
