Axcan ups term loan A to $175 million, cuts revolver to $115 million

By Sara Rosenberg

New York, Feb. 22 - Axcan Pharma Inc. upsized its term loan A to $175 million from $165 million and downsized its revolver to $115 million from $125 million, according to a market source.

The term loan A and the revolver are both priced at Libor plus 350 basis points.

The term loan A was issued at an original issue discount of 96 and carries soft call protection of 102 in year one and 101 in year two.

Amortization on the term loan A is 5% in year one, 7.5% in year two, 7.5% in year three, 10% in year four, 12.5% in year five and 57.5% in year six.

Bank of America, HSBC Bank and RBC are the lead banks on the $290 million six-year credit facility.

Proceeds from the debt 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.

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

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