Galapagos applies for administration to facilitate sales process

By Sarah Lizee

Olympia, Wash., Aug. 22 – Galapagos SA said its directors made an application to the High Court of England and Wales for an administration order in order to facilitate a sales process.

Galapagos said it anticipates that, if the application is granted, the administration will allow a sales process to continue to completion on or before Oct. 31, according to a notice.

None of the issuer’s subsidiaries has applied or anticipate applying for proceedings, and the issuer does not expect the application to affect the underlying operating businesses of Kelvion and Enexio, which will continue as previously.

As a result of the application, an event of default has occurred under the indenture governing the company’s floating-rate notes due 2021 and its 5 3/8% senior secured notes due 2021.

Under the terms of a lock-up agreement, the consenting creditors have agreed not to take any enforcement action that they would otherwise be entitled to take by reason of the event of default.

The holders of the 7% senior notes due 2022 of Galapagos Holding SA, which are guaranteed by Galapagos SA, continue to be bound by terms of the intercreditor agreement restricting enforcement action by, and payments to, those holders.

Sales process

Macquarie Capital has been engaged to run a competitive sales process with respect to Galapagos Bidco Sarl. More than 80 parties were approached with an invitation to participate in the sales process and to submit an initial non-binding, indicative bid on or before the target deadline of Aug. 9.

To date, at least 17 parties have elected to sign confidentiality agreements to receive initial materials in the context of the bid process.

Triton has submitted a bid in the sales process. This is the only bid that has been received as of Aug. 22.

Although the target deadline Aug. 9 has passed, parties still interested in participating in the sales process are encouraged to contact Florian Geiger (florian.geiger@macquarie.com) and Marco Krass (marco.krass@macquarie.com) at Macquarie Capital as soon as possible.

Galapagos makes heat exchangers for industrial applications and is based in Luxembourg.

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