Shire, units post early results of month-long capped tender offer

By Susanna Moon

Chicago, Sept. 10 – Shire plc and its wholly owned subsidiaries gave an update in the capped tender offer for five series of notes as of the early deadline at 5 p.m. ET on Sept. 7.

As announced Aug. 24, the companies are tendering for up to $2.25 billion principal amount of notes, with the first four series given priority over the last issue.

The offers are being made by Shire and its wholly owned subsidiaries Baxalta Inc. and Shire Acquisitions Investments Ireland DAC, according to a previous announcement.

The following series have a priority level of 1 and will price using a reference security plus a fixed spread:

• Baxalta’s $1 billion of 2.875% senior notes due 2020 with pricing to be set using the 2.625% U.S. Treasury due July 31, 2020 plus 30 basis points;

• $500 million of 3.6% senior notes due 2022 with pricing based on the $500 million 2.75% U.S. Treasury due July 31, 2023 plus 65 bps;

• $1.75 billion of 4% senior notes due 2025 with pricing based on 2.875% U.S. Treasury due Aug. 15, 2028 plus 90 bps; and

• $1 billion of 5.25% senior notes due 2045 with pricing based on 3.125% U.S. Treasury due May 15, 2048 plus 155 bps.

As of the early deadline, holders had tendered $848,224,000 of the 2.875% notes, $399.81 million of the 3.6% notes, $1,352,315,000 of the 4% notes and $711.67 million of the 5.25% notes, according to an update on Monday.

Also covered by the offers with a priority level of 2 are Shire Acquisitions’ $3 billion of 3.2% senior notes due 2026 with pricing to be based on 2.875% U.S. Treasury due Aug. 15, 2028 plus 125 bps.

Holders had tendered $1,534,383,000 of the 3.2% notes by the early deadline.

The total purchase price will include an early tender premium of $30.00 for each $1,000 principal amount of notes tendered before the early deadline.

The tender offers will remain open until 11:59 p.m. ET on Sept. 21.

Tendered notes may not be withdrawn after the early deadline.

Pricing was scheduled for 10 a.m. ET on Sept. 10 using a fixed spread over the yield of the bid side price of the reference security.

Holders will also receive accrued interest to but excluding the settlement date.

Notes tendered before the early deadline will be accepted for purchase before those tendered afterward regardless of priority level.

Citigroup Global Markets Ltd. (800 558-3745, 212 723-6106, +44 20 7986 8969 or liabilitymanagement.europe@citi.com) and Morgan Stanley & Co. LLC (800 624-1808, 212 761-1057, +44 20 7677 7799 or liabilitymanagement.europe@morganstanley.com) are the dealer managers. Global Bondholder Services Corp. (866 470-4200, 212 430-3774 or gbsc-usa.com/Shire/) is the depositary and the information agent.

The tender offers are not conditioned upon a minimum amount of notes being tendered. The offers are conditioned upon, however, the closing of the sale of Shire’s oncology business.

Shire is a biopharmaceutical company based in Dublin with a registered office in St. Helier, Jersey. It acquired Baxalta, a biopharmaceutical company based in Bannockburn, Ill., in June.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.