Alkermes restructures to add shorter-dated term loan, updates pricing

By Sara Rosenberg

New York, Sept. 14 - Alkermes Inc. downsized its seven-year senior secured term loan B to $300 million from $375 million and added a new $75 million four-year term loan B to the capital structure, according to a market source.

Also, pricing on the seven-year tranche is now set at Libor plus 375 basis points, the low end of the Libor plus 375 bps to 400 bps talk, and the Libor floor was reduced to 1% from 1.25%, the source said.

As before, the seven-year loan is being offered with an original issue discount of 99.

Meanwhile, price talk on the four-year tranche is Libor plus 325 bps with a 1% Libor floor and a discount of 991/2, the source remarked.

Both loans have 101 soft call protection for one year.

Amortization is 1% per annum on the seven-year loan and 5% for the first three years on the four-year loan.

Commitments for the $375 million of terms loans (B1/BB) are now due at noon ET on Tuesday, accelerated from Thursday, the source added.

Morgan Stanley Senior Funding Inc, Citigroup Global Markets Inc. and J.P. Morgan Securities LLC are the lead banks on the deal.

Proceeds will be used to refinance existing credit facility debt.

Alkermes is a Dublin-based biopharmaceutical company.

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