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Axcan Pharma sets talk for restructured $460 million two-part note offering
By Paul A. Harris
St. Louis, Feb. 12 - Axcan Pharma set price talk on its upsized and restructured $460 million two-part offering of high-yield notes on Tuesday, according to an informed source.
Talk on a $225 million tranche of seven-year senior secured notes is 9% to 9¼%. The senior secured notes are pari passu with Axcan's new term loan A.
Meanwhile a $235 million tranche of eight-year senior unsecured notes (B3/B-) is talked to price 325 basis points to 350 bps behind the senior secured notes.
Pricing is expected on Wednesday.
Prior to restructuring the deal, the Quebec-based specialty pharmaceutical company had been in the market with a single $240 million tranche of eight-year senior unsecured notes.
The upsized $460 million combined note offering is part of Axcan's $750 million of leveraged buyout debt financing.
Concurrent with the upsizing of the bond portion, the company eliminated its proposed $385 million institutional term loan B, replacing it with the senior secured notes and a new $165 million term loan A.
The bank facility also includes a $125 million revolver.
Banc of America Securities LLC is the left lead bookrunner for the Rule 144A with registration rights note offering. HSBC and RBC Capital Markets are joint bookrunners.
The senior secured notes become callable in three years at par plus three-fourths of the coupon. The senior notes become callable in four years at par plus one-half of the coupon.
Credit ratings on the senior secured notes remain to be determined.
Proceeds will be used to help fund the buyout of Axcan by TPG Capital.
Axcan is focused on gastroenterology, with operations in North America and Europe.
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