Overview

• Concordia (“CXR”), a global specialty-generic pharmaceutical company faced competitive and regulatory headwinds putting pressure on its future outlook and near-term debt servicing abilities
• CXR announced its efforts to realign its capital structure by commencing a court proceeding under the Canada Business Corporations Act
• Through the Recapitalization Transaction, CXR obtained new equity in the amount of US$586 million while reducing its total debt load and annual interest payments by approximately US$2.4 billion and US$170 million, respectively

Key Considerations

• View on industry / regulatory challenges and management’s going-forward strategic initiatives
• Improved capital structure
• Pro-forma implied enterprise value vs. going concern values
• Implied securityholder recoveries vs. MPA financial analyses

MPA’s Role and Relevant Factors

• Fairness to the company
• Fairness to each of the securityholders, respectively
• Fairness of the consideration to the securityholders in comparison to a liquidation scenario
• Consideration of certain relative fairness issues

Summary of Terms

• $565 million of new money investment from certain secured / unsecured holders via a Private Placement – proceeds used for partial repayment of secured debt
• Equitization of all unsecured debt