By Devika Patel
Knoxville, Tenn., Oct. 6 – Osmotica Pharmaceuticals plc agreed to sell up to $100 million of floating-rate notes on Oct. 1, according to an 8-K filed with the Securities and Exchange Commission.
Athyrium Opportunities IV Acquisition 2 LP will purchase the notes, which will be sold in three separate closings, including a $55 million initial tranche, a $20 million second tranche, which must be funded within one year of settlement of the first-tranche notes, and a $25 million third closing, which must settle within two years of settlement of the first-tranche notes.
The notes bear interest at Libor plus 900 basis points with a Libor floor of 1.5% and a cap of 3%. All three tranches mature five years from settlement of the first-tranche notes.
Proceeds will be used to repay in full the Osmotica’s remaining term loans and for general corporate purposes.
The biopharmaceutical company is based in Bridgewater Township, N.J.
| Issuer: | Osmotica Pharmaceuticals plc
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| Issue: | Floating-rate notes
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| Amount: | $100 million
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| Maturity: | Five years from settlement of the first $55 million of notes
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| Coupon: | Libor plus 900 bps, Libor floor of 1.5% and cap of 3%
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| Call: | Make-whole call
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| Investors: | Athyrium Opportunities IV Acquisition 2 LP
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| Trade date: | Oct. 1
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| Distribution: | Private placement
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