Published on 7/11/2019 in the Prospect News High Yield Daily.
New Issue: Horizon Pharma prices upsized $600 million eight-year notes at par to yield 5½%
By Paul A. Harris
Portland, Ore., July 11 – Horizon Pharma USA, Inc. priced an upsized $600 million issue of eight-year senior notes (B1/B+) at par to yield 5½% on Thursday, according to a syndicate source.
The yield printed in the middle of yield talk in the 5½% area, and at the tight end of initial guidance in the 5 5/8% area.
Citigroup Global Markets Inc. was the lead bookrunner.
The Dublin-based biopharmaceutical company plans to use the proceeds, along with cash on hand, to redeem all of its 6 5/8% senior notes due 2023 and its 8¾% senior notes due 2024. The additional proceeds resulting from the $100 million upsizing of the deal will be used to repay debt under the company’s term loan B.
| Issuer: | Horizon Pharma USA, Inc.
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| Amount: | $600 million, increased from $500 million
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| Maturity: | Aug. 1, 2027
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| Securities: | Senior notes
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| Lead bookrunner: | Citigroup Global Markets Inc.
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| Joint bookrunners: | Morgan Stanley & Co. LLC, Goldman Sachs & Co. LLC, Cowen
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| Coupon: | 5½%
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| Price: | Par
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| Yield: | 5½%
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| Spread: | 353 bps
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| First call: | Make-whole call at Treasuries plus 50 bps until Aug. 1, 2022, then callable at 104.125
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| Equity clawback: | 40% at 105.5 until Aug. 1, 2022
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| Trade date: | July 11
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| Settlement date: | July 16
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| Ratings: | Moody's: B1
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| S&P: B+
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| Distribution: | Rule 144A and Regulation S for life
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| Price talk: | 5½% area
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| Marketing: | Roadshow
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