Horizon Pharma outlines terms on $900 million term loan B commitment

By Sara Rosenberg

New York, March 31 – Horizon Pharma plc revealed in an 8-K filed with the Securities and Exchange Commission on Tuesday that its committed $900 million six-year covenant-light term loan B is expected to be priced at Libor plus 537.5 basis points with a 1% Libor floor.

The term loan B has 101 soft call protection for six months and amortization of 1% per annum.

Citigroup Global Markets Inc. and Jefferies Finance LLC are the joint lead arrangers and joint bookrunners on the deal.

Proceeds will be used to help fund the acquisition of Hyperion Therapeutics Inc. for $46.00 per share in cash, or about $1.1 billion on a fully diluted basis, and to refinance existing debt.

As previously reported, in a conference call on Monday, company officials said that they actually expect to get about $600 million or so in term loan debt and the balance will likely be raised through a bond offering.

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

Closing is expected in the second quarter, subject to customary conditions, including the tender of a majority of the outstanding Hyperion Therapeutics shares and expiration or termination of the Hart-Scott-Rodino waiting period.

Horizon Pharma is a Dublin-based specialty biopharmaceutical company. Hyperion Therapeutics is a Brisbane, Calif.-based commercial-stage biopharmaceutical company.

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