Axcan sets Thursday launch for $475 million credit facility

By Sara Rosenberg

New York, Jan. 29 - Axcan Pharma Inc. has scheduled a bank meeting for Thursday at 2 p.m. ET at the Le Parker Meridien in New York to launch its proposed $475 million senior secured credit facility (Ba2/BB-), according to a market source.

Bank of America, HSBC Bank and RBC are the lead banks on the deal.

The facility consists of a $350 million seven-year term loan B and a $125 million six-year revolver, according to recent filings with the Securities and Exchange Commission.

Proceeds will be used to help fund the buyout of the company by TPG Capital for $23.35 per common share. The all-cash deal has a total value of $1.3 billion.

Other buyout financing will come from $275 million of senior unsecured notes (or a $275 million senior unsecured increasing rate bridge loan) and $520 million in equity.

Commitments towards the credit facility will be due on Feb. 14 and closing is targeted for Feb. 20, the source added.

Axcan is a Quebec-based pharmaceutical company focused on the treatment of gastrointestinal disorders.

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