Jazz Pharmaceuticals prepays all $63.5 million of remaining 15% notes

By Angela McDaniels

Tacoma, Wash., June 30 - Jazz Pharmaceuticals, Inc. prepaid the remaining $63.5 million principal amount of its 15% senior secured notes, according to a company news release.

The prepayment was made using a combination of borrowings under a new $50 million term loan and $8 million revolving credit facility with Silicon Valley Bank that closed on Wednesday and cash on hand.

The company said that during 2010, it has reduced its long-term debt outstanding to $50 million from $119.5 million, extended the final maturity date of its long-term debt to June 2013 from June 2011 and reduced the interest rate on its long-term debt to a floating rate initially set at 5.75% from 15%.

Jazz Pharmaceuticals believes that its existing cash balances, together with cash it expects to generate from operations and borrowings under the new revolver, will be enough to fund its operations and to meet all of its existing obligations for the foreseeable future.

In May, the company used the proceeds from a public offering of its common stock to prepay $53 million principal amount of the 15% notes.

Jazz Pharmaceuticals is a specialty pharmaceutical company based in Palo Alto, Calif., working on treatments for markets in neurology and psychiatry.

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