8/15/2016, 1:16:39 PM ET
As previously disclosed, Concordia was actively evaluating currency hedging alternatives. Concordia believes that the Swap Agreement will further align its British pound-sterling earnings and strong free cash flow with its debt obligations and will moderate the impact of fluctuations in the GBP to U.S. Dollar exchange rate.
The pay fixed GBP / receive fixed USD cross currency swap has a notional amount of $382 million and effectively converts this amount of Concordia’s USD debt obligations into a GBP obligation in the amount of approximately GBP 297 million. The maturity date of the Swap Agreement is April 15, 2023.
Concordia says it will continue to monitor its currency risks and hedging strategies.