Cheplapharm sets tranche sizes, launches €750 million two-part notes offering; pricing Wednesday

By Paul A. Harris

Portland, Ore., April 26 – Cheplapharm set final tranche sizes and talk in its €750 million two-part offering of senior secured notes due 2030 (B2/B+/BB-) on Wednesday, according to market sources.

A €425 million tranche of fixed-rate notes, which have three years of call protection, is launched at 7½%, in the middle of talk that had them coming in the 7½% area.

Throughout the week the fixed-rate notes have been talked in the 7½% context, sources say.

A €325 million tranche of floating-rate notes, which have one year of call protection, is launched with a 475 basis points spread to Euribor, on top of earlier spread talk and in line with earlier guidance. There is no Euribor floor. The final price will be 99, rich to price talk of 98.5. Initial price talk was 98.

The Rule 144A and Regulation S notes are set to price on Wednesday.

Proceeds plus a drawdown under a revolver, a deferred purchase price as well as cash on hand will be used to finance the acquisitions of the worldwide (excluding Korea) rights and market authorizations for a portfolio of antipsychotic drugs.

The prospective issuer is a pharmaceutical company that markets branded drugs, medical products, supplements and cosmetics, with headquarters in Greifswald, Germany.

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