Mallinckrodt plans $1.55 billion credit facility for Cadence purchase

By Sara Rosenberg

New York, Feb. 11 - Mallinckrodt plc has received a commitment for a $1.55 billion credit facility to help fund its acquisition of Cadence Pharmaceuticals Inc., according to an 8-K filed with the Securities and Exchange Commission on Monday.

Deutsche Bank Securities Inc. is the lead bank on the deal.

The facility consists of a $250 million revolver and $1.3 billion of senior secured term loans.

Other funds for the transaction will come from cash on hand.

Under the agreement, Mallinckrodt will commence a tender offer to purchase all of Cadence Pharmaceuticals' common stock for $14.00 per share in cash, or about $1.3 billion on a fully diluted basis.

Closing is expected in mid-to late-March, subject to customary conditions, the tender of a majority of Cadence Pharmaceuticals' shares and the expiration or termination of the waiting period under the Hart Scott Rodino Antitrust Improvements Act.

Mallinckrodt is a Dublin-based specialty pharmaceutical and medical imaging business. Cadence Pharmaceuticals is a San Diego-based biopharmaceutical company focused on commercializing products principally for use in the hospital setting.

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