Sotera Health subsidiaries agree to settle 870+ EO claims for $408M

Sotera Health Co

Sterigenics to contribute $408M by May 1, 2023 to settle ~870 ethylene oxide claims in Illinois.
Settlement explicitly not an admission of liability; conditioned on opt-in consent from 99% of eligible claimants.
Company borrowed $200M from revolver in Q4 2022; considering incremental debt in H1 2023.
Settling defendants can withdraw if 40+ claimants invalid or >5 new lawsuits filed.
Charge of $408M recorded for FY2022.

Key facts

Extracted from this filing and checked against the source text.

Material Agreements SEC 8-K Item 1.01/1.02 confidence 0.9

Sotera Health Co entered into Term Sheets with Plaintiffs' Executive Committee (PEC) representing Eligible Claimants valued at $408 million (effective 2023-01-09).

Action: entry
Agreement: settlement
Counterparty: Plaintiffs' Executive Committee (PEC) representing Eligible Claimants
Value: $408 million
Effective: 2023-01-09

Exact text from the filing

On January 9, 2023, two subsidiaries of Sotera Health Company (the “Company”), Sotera Health LLC and Sterigenics U.S., LLC (“Sterigenics” and, together with Sotera Health LLC, the “Settling Defendants”), entered into binding term sheets (the “Term Sheets”) with a committee (the “Plaintiffs’ Executive Committee” or “PEC”) of 7 of the 20+ law firms (“Plaintiffs’ Counsel”) representing over 870 claimants

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281 material agreements filed in the last 30 days. Browse all material agreements →

Sotera Health Co filing history →

Source: SEC EDGAR

accession 0001822479-23-000007

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