Perrigo’s 2024 notes tender offer oversubscribed by early deadline

By Marisa Wong

Los Angeles, Nov. 29 – Perrigo Co. plc announced the early tender results of wholly owned finance subsidiary Perrigo Finance Unlimited Co.’s Nov. 10 cash tender offer to purchase up to $300 million of its $700 million outstanding 3.9% senior notes due 2024 (Cusip: 714295AC6).

As of 5 p.m. ET on Nov. 28, the early tender date, holders had tendered $385,548,000 of the notes, according to a Wednesday press release.

The company expects to accept for purchase $300 million of the tendered notes with a proration factor of 76.32% applied.

The company is offering a total consideration of $983.75 per $1,000 principal amount. The total consideration includes an early tender premium of $30 per $1,000 of notes tendered by the early tender date.

The company will also pay accrued interest.

Tenders may no longer be withdrawn as of the early tender date.

The tender offer will expire at 5 p.m. ET on Dec. 12.

However, because the amount of notes tendered by the early tender date exceeded the offer cap, notes tendered after the early deadline will not be purchased under the offer.

Settlement is expected to be on Dec. 15.

As previously announced, the tender offer is not conditioned on any minimum amount of notes being tendered but is subject to a financing condition.

To finance the tender offer, Perrigo, through a wholly owned subsidiary, is concurrently seeking to borrow $300 million of incremental term loans under its existing senior secured credit facilities, subject to market and other conditions. Proceeds of the proposed financing, together with cash on hand or other sources of liquidity, are expected to be used to pay for the notes accepted for purchase under the tender offer and to pay all related fees and expenses.

Prior to the maturity of the notes, the issuer intends to use cash on hand to repay the notes that remain outstanding after the consummation of the tender offer.

The company previously said it is looking to take these actions to enhance financial flexibility, meet near-term debt commitments and support its strategic plans.

The dealer manager for the tender offer is J.P. Morgan Securities LLC (866 834-4666 or 212 834-4087).

D.F. King & Co., Inc. (212 269-5550 for banks and brokers, 800 290-6432; perrigo@dfking.com) is the tender and information agent.

Perrigo is a Dublin-based provider of self-care and over-the-counter health and wellness products.

© 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.