- Based on accounting principles generally accepted in the U.S. (GAAP), annual interest expense is expected to decrease from approximately $40 million to approximately $18 million. On a cash basis, annual interest expense is expected to decrease from approximately $34 million to approximately $16 million.
- For the second quarter of fiscal 2013, the company will incur a one-time charge of approximately $14 million, which includes a $2.8 million prepayment premium and the write-off of deferred financing costs and original issue discount related to the previous debt. This one-time charge is expected to increase interest expense, on a GAAP basis, in the second quarter to approximately $24 million. For each of the third and fourth quarters of fiscal 2013, the company expects interest expense, on a GAAP basis, to be approximately $4.5 million.
- On a GAAP basis, for the remainder of fiscal 2013, the company expects that the savings in interest expense, due to lower cash interest expenses and lower non-cash interest expenses (amortization of deferred financing costs and accretion of original issue discount), will largely offset the one-time charge, and the company is therefore maintaining its expectations for net interest expense in the range of $35 million to $40 million.
- For fiscal 2013, the company continues to expect a GAAP net loss in the range of $20 million to $40 million, or a basic and diluted loss per share of approximately $0.15 to $0.30, based on a weighted average basic share count of approximately 132 million shares outstanding.
- As a result of the refinancing, the company is increasing its expectations for non-GAAP net income to a range of $95 million to $115 million from a prior range of $85 million to $105 million. Correspondingly, the company now expects non-GAAP diluted earnings per share (EPS) to range from $0.69 to $0.84, compared to prior expectations of non-GAAP diluted EPS to range from $0.62 to $0.77, based on a weighted average diluted share count of approximately 137 million shares outstanding.
- As a result of the refinancing, the company is increasing its expectations for free cash flow to a range of $70 million to $90 million from a prior range of $60 million to $80 million for fiscal 2013.
Alkermes Plc Closes Debt Refinancing, Lowering Interest Rate And Reducing Principal Amount
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