Company: GIFLF
Filing Date: 2025-04-11
Form Type: 20-F
Source: 0001104659-25-034245
Chunk: 9

Company: Grifols SA
Filing Date: 2025-04-11
Form: 20-F
Item: Item 3
Chunk 9
---
 dividends or make distributions to the shareholders of Grifols or redeem or repurchase capital stock;
-------------------------------------------------------------------------------------------------------------

●   prepay, redeem or repurchase debt;
--------------------------------------

●   make loans, investments and capital expenditures;
-----------------------------------------------------

●   enter into agreements that restrict distributions from our restricted subsidiaries;
---------------------------------------------------------------------------------------

●   sell assets and capital stock of our subsidiaries;
------------------------------------------------------

●   enter into certain transactions with affiliates; and
--------------------------------------------------------

●   consolidate or merge with or into, or sell substantially all of our assets to, another person.
--------------------------------------------------------------------------------------------------
A breach of any of these covenants could result in a default under our debt agreements. Upon the occurrence of an event of default, the respective creditors could elect to declare all amounts outstanding under the debt agreements to be immediately due and payable and, in the case of the First Lien Credit Facilities, December 2024 Notes, April 2024 Notes, 2021 Notes, 2019 Notes, and the EIB Term Loans, terminate all commitments to extend further credit. If we were unable to repay those amounts, the respective creditors could proceed against the collateral granted to them to secure that indebtedness. We have pledged a significant portion of our assets as collateral under the First Lien Credit Facilities, the EIB Term Loans, the 2019 Notes, the April 2024 Notes and the December 2024 Notes. If the respective creditors under our existing indebtedness accelerate the repayment of borrowings, we may not have sufficient assets to repay our indebtedness.
Our ability to meet our financial obligations depends in part on our ability to receive dividends and other distributions from our subsidiaries.
Our principal assets are the equity interests that we hold in our operating subsidiaries. As a result, we are dependent on dividends and other distributions from our subsidiaries to generate the funds necessary to meet our financial obligations, including the payment of principal and interest on our outstanding debt. Our subsidiaries may not generate sufficient cash from operations to enable us to make principal and interest payments on our indebtedness or may have preferential dividends which are required to be paid prior to any dividends to us. For example, in the case of each of Biomat USA, Inc. (“Biomat USA”) and Biomat Newco Corp (“Biomat Newco”), our U.S.-based plasma collection subsidiaries, to the extent dividends are declared by their respective shareholders, the GIC Investor (as defined Item 4 of this Part I, “Information on the Company—A. History of and Development of the Company—Important Mile