Fortrea targets debt ratio below 3x; leverage ratio was 4x at June 30

By Devika Patel

Knoxville, Tenn., Aug. 14 – Fortrea is targeting a net leverage ratio of between 2.5x and 3x in the medium term and will allocate capital towards debt reduction until it reaches that target.

The company’s net leverage ratio was 4x at the end of the last quarter.

“Our target for net leverage ratio continues to be 2.5x to 3x over the medium term,” chief financial officer Jill McConnell said on the company’s second quarter ended June 30 earnings conference call on Monday.

The company completed several debt transactions last quarter.

“During the quarter, we issued $570 million of senior notes due in 2030, and we entered into a $450 million revolving credit facility, a five-year $500 million term loan A facility and a seven-year $570 million term loan B facility,” McConnell said.

Fortrea is a Durham, N.C.-based contract research organization providing comprehensive phase I through IV biopharmaceutical product and medical devices services.

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