Mallinckrodt talks $500 million term loan B at Libor plus 300 bps

New York, Jan. 29 – Mallinckrodt plc announced talk of Libor plus 300 basis points with a 0.75% Libor floor and an offer price of 99.75 for its $500 million term loan B (Ba1/BB+), according to a market source.

The loan due Feb. 24, 2025 was launched with a lender call on Monday.

There is 101 soft call protection for six months and amortization of 1% per year.

Proceeds will be used to finance the acquisition of Sucampo Pharmaceuticals, Inc., to refinance some of Sucampo’s debt, to pay transaction costs and for general corporate purposes.

Mallinckrodt International Finance SA and Mallinckrodt CB LLC will be the borrowers.

Deutsche Bank, Barclays and Citigroup are joint lead arrangers and joint bookrunners for the financing. Deutsche Bank AG, New York Branch is administrative agent. Credit Suisse, Goldman Sachs, Morgan Stanley, Wells Fargo, Mizuho and PNC are co-managers.

Commitments are due by Feb. 6.

Mallinckrodt is a Dublin-based pharmaceutical company with U.S. headquarters in St. Louis.

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