Jazz Pharmaceuticals obtains $1.5 billion five-year credit agreement

By Wendy Van Sickle

Columbus, Ohio, June 18 – Jazz Pharmaceuticals plc entered into a $1.5 billion credit agreement on Thursday, according to an 8-K filing with the Securities and Exchange Commission.

The agreement consists of a $750 million five-year term loan facility and a $750 million five-year revolving credit facility, of which $160 million was drawn at closing. The revolver includes a $25 million swingline loan subfacility and a $25 million letter-of-credit subfacility.

Interest under the term loan and revolver will be at Libor plus 150 basis points to 225 bps or the Prime rate plus 50 bps to 125 bps.

Bank of America, NA is the administrative agent and collateral agent on the deal. Merrill Lynch, Pierce, Fenner & Smith Inc., Barclays Bank plc, Citigroup Global Markets, Inc. DNB (UK) Ltd., J.P. Morgan Securities LLC and RBC Capital Markets are the joint lead arrangers and joint bookrunners.

Credit Suisse AG Cayman Islands branch, HSBC Bank plc, Morgan Stanley Bank, NA, MUFG Union Bank, NA, Sumitomo Mitsui Banking Corp. New York branch and SunTrust Bank are the co-documentation agents.

The company used proceeds from initial borrowings to repay loans from a 2012 credit agreement. It expects to use future borrowings under the revolver for general corporate purposes, including potential business development.

Jazz is a Dublin-based pharmaceutical company.

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