By Paul A. Harris
St. Louis, April 30 - Axcan Intermediate Holdings Inc. priced a $235 million issue of 12¾% eight-year senior unsecured notes (B3/B-) at 98.84 to yield 13% on Wednesday, according to an informed source.
The notes price on top of the 13% area price talk.
A source close to the deal said that it went very well and added that the order book was three times subscribed.
Banc of America Securities LLC, HSBC and RBC Capital Markets were joint bookrunners for the Rule 144A and Regulation S with registration rights deal.
Proceeds will be used to repay a senior unsecured bridge facility related to the $750 million leveraged buyout of Axcan by TPG Capital.
On Feb. 13 the company withdrew the offering of senior notes on the same day that it priced a $228 million issue of 9½% senior secured notes due 2015 (Ba2/BB-) at 98.737 to yield 9½%.
Mont-Saint-Hilaire, Quebec-based Axcan is a specialty pharmaceutical company focused on gastroenterology, with operations in North America and Europe.
| Issuer: | Axcan Intermediate Holdings Inc.
|
| Face amount: | $235 million
|
| Proceeds: | $232.274 million
|
| Maturity: | March 1, 2016
|
| Security description: | Senior notes
|
| Bookrunners: | Banc of America Securities LLC, HSBC, RBC Capital Markets
|
| Coupon: | 12¾%
|
| Price: | 98.84
|
| Yield: | 13%
|
| Spread: | 943 bps
|
| Call features: | Callable on March 1, 2012 at 106.375, 103.188, par on and after March 1, 2014
|
| Equity clawback: | Until March 1, 2011 for 35% at 112.75
|
| Trade date: | April 30
|
| Settlement date: | May 6
|
| Ratings: | Moody's: B3
|
| Standard & Poor's: B-
|
| Distribution: | Rule 144A/Regulation S with registration rights
|
| Price talk: | 13% area
|
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