By Paul A. Harris
Portland, Ore., March 17 - K-V Pharmaceutical Co. privately placed an upsized $225 million issue of 12% four-year senior secured notes on March 3, according to an informed source.
The notes were sold at a reoffer price of 97 to yield 12.986%.
The deal, which was led by placement agent Jefferies & Co., was upsized from $200 million.
Proceeds from the Regulation D notes offering will be used to repay the company's credit agreement with U.S. Healthcare I, LLC and U.S. Healthcare II, LLC, including the payment of related premiums, and to terminate the related future loan commitments and to fund general corporate purposes.
The St. Louis-based fully integrated specialty pharmaceutical company also plans to establish an escrow reserve for one year of interest payments on the notes.
| Issuer: | K-V Pharmaceutical Co.
|
| Amount: | $225 million, increased from $200 million
|
| Proceeds: | $218.25 million
|
| Maturity: | March 15, 2015
|
| Securities: | Senior secured notes
|
| Placement agent: | Jefferies & Co.
|
| Coupon: | 12%
|
| Price: | 97
|
| Yield: | 12.986%
|
| Call features: | Make-whole call at Treasuries plus 50 bps until March 15, 2013, then callable at 109, par on and after March 15, 2014
|
| Equity clawback: | 35% at 112 until March 15, 2013
|
| Change-of-control put: | 101%
|
| Trade date: | March 3
|
| Settlement date: | March 17
|
| Distribution: | Regulation D with registration rights
|
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