Grifols $3.4 billion facility retail launch expected in September

By Sara Rosenberg

New York, July 27 - Grifols is now expected to launch its $3.4 billion credit facility (Ba3/BB) to retail investors sometime in September, according to a market source.

Deutsche Bank, Nomura, BBVA, BNP Paribas, HSBC and Morgan Stanley are the lead banks on the deal.

The facility consists of a $300 million revolver, a $750 million term loan A and a $2.35 billion term loan B.

Price talk on the term loan A is Libor plus 375 basis points and price talk on the term loan B is Libor plus 400 bps.

Proceeds from the facility, along with $1.1 billion of notes backed by a bridge loan commitment, will be used to help fund the company's acquisition of Talecris Biotherapeutics Holdings Corp.

Under the agreement, Grifols is buying Talecris for a combination of cash and newly issued Grifols non-voting shares having an aggregate value of $3.4 billion. The enterprise value of the transaction is $4 billion if Talecris' debt is included.

Specifically, Grifols is paying $19.00 per share in cash and 0.641 in newly issued non-voting shares for each Talecris share. The cash portion of the consideration is $2.5 billion.

After the transaction, Grifols anticipates that its initial net debt to EBITDA ratio will reach roughly 5.0 times.

Closing is expected to take place in the second half of the year, subject to customary conditions, including antitrust and regulatory review, and the approval of each company's shareholders.

Grifols is a Spain-based health care company and producer of plasma protein therapies. Talecris is a Research Triangle Park, N.C.-based biotherapeutics products company.

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