Horizon Pharma launches $500 million term loan B to investors

By Sara Rosenberg

New York, April 20 – Horizon Pharma plc held a bank meeting at 10 a.m. ET on Monday to launch a $500 million six-year senior secured covenant-light term loan B, according to a market source.

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

Price talk on the term loan B is Libor plus 400 basis points with a 1% Libor floor and an original issue discount of 99, the source said.

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

Commitments are due on Friday, the source added.

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.

Other funds for the transaction will come from $300 million of senior notes due 2023 and cash on the balance sheet.

Closing is expected this 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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