Jazz Pharmaceuticals talks downsized $1.5 billion eight-year secured notes at 4 5/8% area

By Paul A. Harris

Portland, Ore., April 22 – Jazz Pharmaceuticals plc downsized its offering of eight-year senior secured notes (Ba2/BB-/BB+) to $1.5 billion from $2.7 billion and talked the notes to price with a yield in the 4 5/8% area, according to market sources.

Official talk comes inside of initial guidance in the high 4% area.

The deal is set to price on Thursday.

BofA Securities is the left bookrunner. JPMorgan, Barclays, Citigroup, Credit Suisse, DNB, MUFG, RBC, Sumitomo and Truist are the joint bookrunners.

The Rule 144A and Regulation S notes become callable after three years at par plus 50% of the coupon. A special call provision allows the issuer to redeem 10% of the notes annually at 103 during the non-call period.

The notes also feature a three-year 40% equity clawback and a 101% poison put.

The issuing entity will be Jazz Securities DAC.

Along with downsizing the notes offering, the company upsized its U.S. and euro term loan B to total $3.85 billion equivalent from $2.65 billion equivalent.

The Dublin, Ireland-based biopharmaceutical company plans to use the proceeds plus acquisition date borrowings under its new senior secured credit facilities and cash on hand to fund the acquisition of GW Pharmaceuticals plc and refinance certain debt, including existing senior credit facilities.

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