By Paul A. Harris
Portland, Ore., April 22 – Jazz Pharmaceuticals plc priced downsized $1.5 billion issue of eight-year senior secured notes (Ba2/BB-/BB+) at par to yield 4 3/8% on Thursday, according to market sources.
The issue size decreased from $2.7 billion.
The yield printed 12.5 basis points inside of yield talk in the 4 5/8% area. Initial guidance was in the high 4% area.
The downsizing had nothing to do with demand, which was heard to be north of $7 billion, according to a bond trader, who had the new Jazz Pharmaceuticals 4 3/8% notes due 2029 at 102¼ bid, 102¾ offered.
The notes were sold via Jazz Securities DAC.
BofA was the left bookrunner. Joint bookrunners were JPMorgan, Barclays, Citigroup, Credit Suisse, DNB, MUFG, RBC, Sumitomo and Truist.
Concurrently with the downsizing of the notes, the company upsized its U.S. and euro term loans B to total $3.85 billion equivalent from $2.65 billion equivalent.
The Dublin, Ireland-based biopharmaceutical company plans to use the proceeds plus acquisition date borrowings under its new senior secured credit facilities and cash on hand to fund the acquisition of GW Pharmaceuticals plc and refinance certain debt, including existing senior credit facilities.
| Issuer: | Jazz Securities DAC
|
| Amount: | $1.5 billion, decreased from $2.7 billion
|
| Maturity: | Jan. 15, 2029
|
| Securities: | Senior secured notes
|
| Left bookrunner: | BofA
|
| Joint bookrunners: | JPMorgan, Barclays, Citigroup, Credit Suisse, DNB, MUFG, RBC, Sumitomo and Truist
|
| Coupon: | 4 3/8%
|
| Price: | Par
|
| Yield: | 4 3/8%
|
| Spread: | 298 bps
|
| First call: | Make-whole call at Treasuries plus 50 bps until July 15, 2024 then callable at 102.188
|
| Equity clawback: | 40% at 104.375 until July 15, 2024
|
| Trade date: | April 22
|
| Settlement date: | April 29
|
| Ratings: | Moody's: Ba2
|
| S&P: BB
|
| Fitch: BB+
|
| Distribution: | Rule 144A and Regulation S for life
|
| Price talk: | 4 5/8% area
|
| Marketing: | Roadshow
|
|
|
© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere.
For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.
