By Sabela Ojea
Shares of Sotera Health Co. on Monday rose about 5% in after-hours trading after the lab testing services company said it could increase its debt financing in the first quarter of the year to further enhance its liquidity position
In after-hours trading, shares were up 5% to $9.07.
Sotera Health’s increased debt financing is expected to be used toward the appeal of a $363 million verdict against the company regarding cancer-causing emissions from a plant in Illinois, it said.
In the last quarter of 2022, the company already borrowed $200 million amid litigation needs under its existing secured revolving credit facility, it added.
The company reiterated its 2022 guidance of between $995 million and $1.01 billion. The company will report its fourth quarter and full-year results Feb. 28.
“Despite a challenging macroeconomic environment, the team did a good job focusing on our core values to deliver these results,” Chief Executive Michael B. Petras said.
Write to Sabela Ojea at sabela.ojea@wsj.com; @sabelaojeaguix
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