Horizon Pharma talks $375 million term loan at Libor plus 400-425 bps

By Sara Rosenberg

New York, Oct. 13 – Horizon Pharma plc launched on Thursday a $375 million senior secured incremental term loan with price talk of Libor plus 400 basis points to 425 bps with a 1% Libor floor and an original issue discount of 99.5, according to a market source.

The term loan has 101 soft call protection for six months, the source said.

Bank of America Merrill Lynch, J.P. Morgan Securities LLC, Jefferies Finance LLC, Citigroup Global Markets Inc. and Cowen and Co. are the leads on the transaction, with Bank of America the left lead.

Commitments are due on Wednesday, the source added.

Proceeds will be used to help fund the acquisition of Raptor Pharmaceutical Corp. for $9.00 per share in cash, for an implied fully diluted equity value of about $800 million.

The company had received a commitment for a $675 million incremental term loan for the acquisition, but came to market with the smaller sized loan deal as a result of plans to issue $300 million in senior notes.

Closing on the acquisition is expected in the fourth quarter, subject to the satisfaction of customary conditions and regulatory approvals, including antitrust approval in the United States.

Horizon Pharma is a Dublin, Ireland-based biopharmaceutical company. Raptor is a Novato, Calif.-based biopharmaceutical company.

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