By Paul A. Harris
Portland, Ore., April 8 – Mallinckrodt International Finance SA priced an upsized $1.4 billion two-part issue of senior notes (B1/BB-) on Wednesday, according to an informed source.
An upsized $700 million of tranche of five-year notes priced at par to yield 4 7/8%, on top of yield talk. The tranche was upsized from $500 million.
A $700 million tranche of 10-year notes priced at par to yield 5½%. The yield printed at the tight end of yield talk in the 5 5/8% area.
The overall size of the transaction was increased from $1.2 billion.
Goldman Sachs & Co. was the left bookrunner. Barclays and Deutsche Bank Securities Inc. were the joint bookrunners.
Proceeds will be used to help fund the acquisition of Ikaria, Inc., a Hampton, N.J.-based provider of proprietary and innovative therapies for the critical care units in hospitals.
Mallinckrodt is a Dublin-based pharmaceutical company with headquarters in St. Louis.
| Issuers: | Mallinckrodt International Finance SA and Mallinckrodt CB LLC
|
| Amount: | $1.4 billion, increased from $1.2 billion
|
| Securities: | Senior notes
|
| Left bookrunner: | Goldman Sachs & Co.
|
| Joint bookrunners: | Barclays, Deutsche Bank Securities Inc.
|
| Trade date: | April 8
|
| Settlement date: | April 15
|
| Ratings: | Moody's: B1
|
| Standard & Poor's: BB-
|
| Distribution: | Rule 144A and Regulation S for life
|
| Marketing: | Roadshow
|
|
|
| Five-year notes
|
| Amount: | $700 million, increased from $500 million
|
| Maturity: | April 15, 2020
|
| Coupon: | 4 7/8%
|
| Price: | Par
|
| Yield: | 4 7/8%
|
| Call protection: | Two years
|
| Price talk: | 4 7/8% area
|
|
|
| 10-year tranche
|
| Amount: | $700 million
|
| Maturity: | April 15, 2025
|
| Coupon: | 5½%
|
| Price: | Par
|
| Yield: | 5½%
|
| Call protection: | Five years
|
| Price talk: | 5 5/8% area
|
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