Axcan launches $475 million credit facility at Libor plus 350 bps

By Sara Rosenberg

New York, Feb. 1 - Axcan Pharma Inc. launched both tranches under its $475 million senior secured credit facility (Ba2/BB-) with price talk of Libor plus 350 basis points, according to a market source.

Tranching on the deal is comprised of a $350 million seven-year term loan B and a $125 million six-year revolver.

The term loan B is being guided at an original issue discount in the range of 96 to 97 and carries call protection of 102 in year one and 101 in year two, the source said.

Bank of America, HSBC Bank and RBC are the lead banks on the deal that was launched with a bank meeting on Thursday afternoon.

Proceeds from the credit facility, along with $240 million in senior unsecured notes, 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.

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

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

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