Company: GIFLF
Filing Date: 2025-02-26
Form Type: 6-K
Source: 0001104659-25-017501
Chunk: 40

Company: Grifols SA
Filing Date: 2025-02-26
Form: 6-K
Chunk 40
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 it as a derivative financial instrument that needs to be fairly valued, ultimately impacting the profit and loss  
 account.                                                                                                                     
 The exercise price for the option will be determined based on the higher of the following two amounts: (i) the aggregate     
 of the price at which the shares were sold to Scranton, increased by any expenses relating to the completion of the          
 transactions contemplated in the relevant share purchase agreement, plus the increase in net working capital from the        
 date of sale until the repurchase completion date resulting from the exercise of the repurchase option; and (ii) the         
 amount required to pay in full the indebtedness that Scranton incurred with the lending entity to purchase the shares of     
 Haema and BPC from the Selling Companies, for an amount of USD 425,000,000 along with any accrued interest and               
 additional amounts required to fully repay that indebtedness.                                                                
 Based on the abovementioned contractual conditions, Grifols has estimated the value of the exercise of the repurchase        
 option as follows: (i) the price at which the Selling Companies sold the shares to Scranton (totalling USD538,000,000)       
 increased by any expenses relating to the completion of the transactions contemplated in the relevant share purchase         
 agreement, plus (ii) the change in working capital. Based on the business models of Haema and BPC, this change in            
 working capital is expected to primarily reflect the undistributed profits at the time of exercise of the repurchase option. 
 Given that the price of the exercise of the repurchase option aligns closely with the fair value of BPC and Haema, this      
 option's overall value is not considered significant. Furthermore, since the valuation of the option relies on unobservable  
 market factors, it falls under Level 3 of the fair value hierarchy.                                                          
 In July 2024, Scranton entered into a loan agreement with funds controlled or managed by Oaktree (the "Loan                  
 Agreement") to refinance the loan that Scranton had initially obtained from banks in 2019. According to the terms of         
 the Loan Agreement, this financing benefits from the following guarantees and security interest: (i) by a guarantee from     
 BPC, (ii) a pledge of the shares of Haema and BPC, and (iii) pledges over the assets of BPC. Currently, Haema and its        
 assets do not secure or guarantee this financing; however, based on the current terms of the Loan Agreement, it is           
 expected that Haema