Grifols launches €2 billion equivalent notes in dollar, euro tranches; pricing Tuesday

By Paul A. Harris

Portland, Ore., Sept. 28 – Grifols, SA launched its €2 billion equivalent two-part offering of seven-year senior notes (B3/B/B+) with tranche sizes and pricing on Tuesday, according to market sources.

The deal includes $705 million notes launched at 4¾%, tight to the 4¾% to 5% price talk and inside of initial talk in the low-to-mid 5% area.

The offering also includes €1.4 billion notes launched at 3 7/8%, in the middle of the 3¾% to 4% price talk and tight to initial talk in the 4% area.

The deal is set to price on Tuesday.

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.

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