Shire draws $12.39 billion of bridge loan to finance Baxalta purchase

By Angela McDaniels

Tacoma, Wash., June 3 – Shire plc drew $12.39 billion of its $13 billion term loan on May 31 to finance the cash consideration payable in its acquisition of Baxalta Inc., according to an 8-K filing with the Securities and Exchange Commission.

As previously reported, the company secured the term loan as part of an $18 billion bridge loan facility that also includes a $5 billion revolving credit facility.

Each of the term loan and the revolver mature Jan. 11, 2017 and has a one-year extension option.

Barclays Bank plc and Morgan Stanley Bank International Ltd. acted as lead arrangers and bookrunners, with Barclays also acting as agent.

Borrowings under each tranche accrue interest at Libor plus 125 basis points, increasing by 25 bps on each three-month interval starting July 11, 2017 and by 50 bps on each three-month interval starting April 11, 2017.

In January, the company said it planned to refinance the bank facility through capital market debt issuances.

Shire is a biopharmaceutical company based in Dublin with a registered office in St. Helier, Jersey. Baxalta is a biopharmaceutical company based in Bannockburn, Ill.

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