By Paul A. Harris
Portland, Ore., April 24 – Horizon Pharma, Inc. priced an upsized $475 million issue of eight-year senior notes (B2/B-) at par to yield 6 5/8% on Friday, according to a syndicate source.
The deal was upsized from $300 million.
The yield printed at the tight end of yield talk in the 6¾% area.
Citigroup Global Markets Inc. and Jefferies LLC were the joint bookrunners.
Proceeds will be used to help fund the acquisition of Brisbane, Calif.-based commercial-stage biopharmaceutical company Hyperion Therapeutics, Inc. With respect to the $175 million of additional proceeds that are expected to result from the upsizing, $100 million was shifted away from the concurrent bank loan, decreasing it to $400 million from $500 million. The remaining $75 million of additional proceeds will be used for general corporate purposes.
Horizon Pharma is a Dublin-based specialty biopharmaceutical company.
| Issuer: | Horizon Pharma Financing Inc. to be merged with and into Horizon Pharma, Inc.
|
| Amount: | $475 million, increased from $300 million
|
| Maturity: | May 1, 2023
|
| Securities: | Senior notes
|
| Bookrunners: | Citigroup Global Markets Inc., Jefferies LLC
|
| Co-managers: | Cowen, Guggenheim
|
| Coupon: | 6 5/8%
|
| Price: | Par
|
| Yield: | 6 5/8%
|
| Spread: | 495 bps
|
| Call: | Make-whole call until May 1, 2018, then at 104.969
|
| Equity claw: | For up to 35% at 106.625 until May 1, 2018
|
| Trade date: | April 24
|
| Settlement date: | April 29
|
| Ratings: | Moody's: B2
|
| Standard & Poor's: B-
|
| Distribution: | Rule 144A for life and Regulation S
|
| Price talk: | 6¾% area
|
| Marketing: | Roadshow
|
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