In July 2010, Standard International Group successfully closed on a $7,000,000 financing of Legacy Pharmaceuticals Puerto Rico subsidiary. Standard International Group was retained by Legacy in June 2009 to assist them in recapitalizing their Puerto Rico balance sheet in order to fund the roll out of new products as well as transition costs from drugs going off patent. Given the tight credit markets, private capital was not available at an attractive rate or terms. Standard International Group utilized its long standing relationships in the region and initiated dialog with the Puerto Rico Industrial Development Company (PRIDCO) as well as the Economic Development Bank (BDE). Standard International Group assisted in preparing and presenting Legacy’s strategy for growing its business and the substantial economic benefits that would accrue to the island of Puerto Rico, such as job growth and increasing tax revenue. In doing so, Standard International Group was able to secure a $5,000,000 working capital loan as well as $2,000,000 in economic incentives for Legacy to fund its growth initiative. The transaction allowed Legacy to roll out its new products and expand the head count at its plant in Humacao, Puerto Rico and is a great example of our ability to negotiate public-private partnerships.
