Horizon’s revised financing to include $800 million of loans, notes

By Angela McDaniels

Tacoma, Wash., April 13 – Horizon Pharma plc now plans to borrow up to $800 million through an offering of senior notes and a new senior unsecured term loan instead of borrowing a $900 million senior secured term loan B as it had originally planned, according to a 424B5 filing with the Securities and Exchange Commission.

The proceeds of the debt and a stock offering will be used to fund the company’s acquisition of Hyperion Therapeutics Inc. and to refinance the loans under Horizon’s existing credit facility and some outstanding Hyperion debt.

The amount, terms and conditions of the debt financings will be subject to market conditions.

The closing of the debt financings will be conditioned on the simultaneous closing of the acquisition.

The company entered into a commitment letter for the $900 million term loan B with Citigroup Global Capital Markets Inc. and Jefferies finance LLC on March 29.

The six-year covenant-light term loan B was expected to be priced at Libor plus 537.5 basis points with a 1% Libor floor. It was going to have 101 soft call protection for six months and amortization of 1% per year.

In a conference call in March, company officials said that they actually expected to get about $600 million or so of term loan debt and the balance through a bond offering. Other funds for the transaction were to come from cash on hand.

Horizon Pharma is a Dublin-based specialty biopharmaceutical company. Hyperion Therapeutics is a Brisbane, Calif.-based commercial-stage biopharmaceutical company.

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