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Jazz Pharmaceuticals reduces term loan B size to $475 million
By Sara Rosenberg
New York, June 11 - Jazz Pharmaceuticals plc downsized its six-year term loan B to $475 million from $500 million as the company has more cash on its balance sheet than originally anticipated, according to a market source.
Pricing on the term loan B is Libor plus 425 basis points with a 1% Libor floor and an original issue discount of 981/2.
There is 101 soft call protection for one year.
Amortization is 5% in year one, 7.5% in year two, 10% in years three and four and 15% in year five, with the balance due at maturity.
The company's now $575 million credit facility (Ba3/BBB-), down from $600 million, also includes a $100 million five-year revolver priced at Libor plus 400 bps with no Libor floor and an original issue discount of 99.
The credit agreement includes a 50% excess cash flow sweep.
Barclays Capital Inc., J.P. Morgan Securities LLC and Citigroup Global Markets Inc. are the lead banks on the deal.
Proceeds, along with cash on hand, will finance the acquisition of EUSA Pharma, a specialty pharmaceutical company with headquarters in Langhorne, Pa., and Oxford, England.
The purchase price is $650 million in cash plus a potential $50 million milestone payable based upon EUSA's lead product, Erwinaze, achieving a specified U.S. net sales target in 2013.
The transaction is expected to provide additional revenue of $210 million to $230 million, additional adjusted EBITDA of $75 million to $85 million and an additional $0.75 to $0.85 of adjusted earnings per share, all in 2013.
Closing is anticipated this month, subject to customary conditions and regulatory approvals, including antitrust approval in the United States.
Jazz Pharmaceuticals is a Dublin, Ireland-based specialty biopharmaceutical company.
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