Grifols expected to sell €2 billion equivalent seven-year notes in dollars, euros on Tuesday

By Paul A. Harris

Portland, Ore., Sept. 27 – Grifols, SA plans to price €2 billion equivalent of seven-year senior notes (expected ratings B3/B) in dollar-denominated and euro-denominated tranches on Tuesday, according to market sources.

The deal was scheduled to kick off on Monday investor presentations.

The dollar-denominated notes are in the market with initial talk in the low-to-mid 5% area. The euro-denominated notes come with initial talk in the 4% area.

BofA is the global coordinator and bookrunner.

The notes in both tranches come with three years of call protection. There is also a special provision for a €500 million capped redemption of certain of the notes at par plus accrued interest.

The issuing entity will be Grifols Escrow Issuer, SAU.

Proceeds will be used to help finance the acquisition of 89.88% of the ordinary shares and 1.08% of the preferred equity shares of Biotest AG from Tiancheng (Germany) Pharmaceutical Holdings, to fund a tender for the remaining ordinary and preferred shares, and for general corporate purposes, which may include debt repayment (possibly including the capped redemption), capital expenditures and working capital.

Grifols is a Barcelona, Spain-based pharmaceutical and chemical manufacturer.

© 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.