Sucampo ups spread on $250 million term loan to Libor plus 725 bps

By Sara Rosenberg

New York, Oct. 19 – Sucampo Pharmaceuticals Inc. increased pricing on its $250 million senior secured term loan B (B3/B) to Libor plus 725 basis points from Libor plus 700 bps, according to a market source.

Also, the original issue discount on the term loan widened to 97 from 98, the source said.

The term loan still has a 1% Libor floor, hard call protection of 102 in year one and 101 in year two and amortization of 10% per annum.

Jefferies Finance LLC is the bookrunner and lead arranger on the debt.

Proceeds will be used to help fund the acquisition of R-Tech Ueno for ¥33 billion, or about $278 million, inclusive of around $54 million in cash and 2.5 million Sucampo shares, held by R-Tech Ueno.

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

Closing is anticipated on Oct. 20, subject to the minimum acceptance threshold in a tender offer, regulatory approvals and other customary conditions.

Total debt to combined adjusted EBITDA is 2.9 times and total net debt to combined adjusted EBITDA is 1.5 times.

Sucampo is a Bethesda, Md.-based pharmaceutical company. R-Tech Ueno is a Tokyo-based pharmaceutical company.

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