Horizon Pharma sets $375 million term loan B at Libor plus 450 bps

By Sara Rosenberg

New York, Oct. 20 – Horizon Pharma Inc. finalized pricing on its $375 million senior secured incremental covenant-light term loan B (Ba2/BB-) due May 7, 2021 at Libor plus 450 basis points, the high end of the revised Libor plus 425 bps to 450 bps talk, and wide of initial talk of Libor plus 400 bps to 425 bps, according to a market source.

In addition, the original issue discount firmed at 99.5, the tight end of the revised 99 to 99.5 talk, but in line with initial talk of 99.5, the source said.

Furthermore, the 101 soft call protection was extended to one year from six months and the 18-month MFN sunset was removed, setting the MFN for the life of the loan.

The term loan still has a 1% Libor floor.

Bank of America Merrill Lynch, J.P. Morgan Securities LLC, Jefferies Finance LLC, Citigroup Global Markets Inc. and Cowen and Co. are the leads on the transaction, with Bank of America the left lead.

Recommitments were scheduled to be due at noon ET on Thursday, the source added.

Proceeds will be used to help fund the acquisition of Raptor Pharmaceutical Corp. for $9.00 per share in cash, for an implied fully diluted equity value of about $800 million.

Other funds for the transaction will come from $300 million in senior notes and cash on hand.

Closing on the acquisition is expected in the fourth quarter, subject to the satisfaction of customary conditions and regulatory approvals, including antitrust approval in the United States.

Horizon Pharma is a Dublin, Ireland-based biopharmaceutical company. Raptor is a Novato, Calif.-based biopharmaceutical company.

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