Horizon Pharma cuts term loan B to $400 million, reduces pricing

By Sara Rosenberg

New York, April 23 – Horizon Pharma plc downsized its six-year senior secured covenant-light term loan B to $400 million from $500 million and trimmed pricing to Libor plus 350 basis points from Libor plus 400 bps, according to a market source.

Also, the original issue discount on the term loan was revised to 99½ from 99, the source said.

The term loan B still has a 1% Libor floor and 101 soft call protection for six months.

Commitments are due on Friday, the source added.

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

Other funds for the transaction will come from $475 million of senior notes due 2023 and cash on the balance sheet.

The notes were upsized from $300 million with the term loan downsizing, and the $75 million of additional proceeds being raised from the bond offering will be used for general corporate purposes, the source added.

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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