Salix expected to start roadshow on Monday for $750 million senior notes via Jefferies

By Paul A. Harris

Portland, Ore., Dec. 3 - Salix Pharmaceuticals Ltd. is expected to start a roadshow on Monday for a $750 million offering of senior notes (B2/B), according to a market source, who added that the deal will be led by Jefferies LLC.

The company launched a $1.35 billion credit facility at a bank meeting on Wednesday. The bank deal is also being led by Jefferies.

Proceeds will be used to help fund the acquisition of Santarus, Inc. for $32 per share, or about $2.6 billion.

Other funds for the transaction are expected to come from about $800 million of cash on hand.

Closing is expected in the first quarter of 2014, subject to a minimum tender of at least a majority of the outstanding shares of Santarus common stock on a fully diluted basis, the expiration or termination of the waiting period under the Hart Scott Rodino Antitrust Improvements Act and other customary conditions.

Salix is a Raleigh, N.C.-based developer and marketer of prescription pharmaceutical products and medical devices for the prevention and treatment of gastrointestinal diseases. Santarus is a San Diego-based specialty biopharmaceutical company.

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