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Mallinckrodt increases term loan B amount to $600 million
By Sara Rosenberg
New York, Feb. 6 – Mallinckrodt plc upsized its term loan B (Ba1/BB+) due Feb. 24, 2025 to $600 million from $500 million, according to a market source.
Pricing on the loan remained at Libor plus 300 basis points with a 0.75% Libor floor and an original issue discount of 99.75, the source said.
The term loan has 101 soft call protection for six months and amortization of 1% per annum.
Deutsche Bank Securities Inc., Barclays and Citigroup Global Markets Inc. are joint lead arrangers and joint bookrunners on the deal. Co-managers include Credit Suisse Securities (USA) LLC, Goldman Sachs Bank USA, Morgan Stanley Senior Funding Inc., Wells Fargo Securities LLC, Mizuho and PNC. Deutsche is the administrative agent.
Books were scheduled to close at 1:30 p.m. ET on Tuesday, the source added.
Mallinckrodt International Finance SA and Mallinckrodt CB LLC are the borrowers.
Proceeds will be used to finance the acquisition of Sucampo Pharmaceuticals Inc., to refinance some of Sucampo’s debt, to pay transaction costs and for general corporate purposes.
Under the agreement, Sun Acquisition Co., a subsidiary of Mallinckrodt, will commence a cash tender offer to purchase all of the outstanding shares of Sucampo’s common stock for $18.00 per share. The total transaction value including anticipated payments in respect of Sucampo’s debt is about $1.2 billion.
Closing is subject to customary conditions, including expiration of the applicable waiting period under the Hart-Scott-Rodino Antitrust Improvements Act, and the tender of a majority of the outstanding Sucampo shares.
Mallinckrodt is a U.K.-based specialty pharmaceutical company. Sucampo is a Rockville, Md.-based biopharmaceutical company.
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