Horizon talks $1.3 billion term loan B at Libor plus 200-225 bps

By Sara Rosenberg

New York, Feb. 17 – Horizon Therapeutics USA Inc. launched on its call on Wednesday its $1.3 billion seven-year senior secured covenant-lite term loan B (Ba1/BBB-) with price talk of Libor plus 200 basis points to 225 bps with a 0.5% Libor floor and an original issue discount of 99.5, according to a market source.

The term loan is also talked with a 25 bps step-down at 2x total net leverage with cash netting capped at $50 million, 101 soft call protection for six months and amortization of 1% per annum, the source said.

Citigroup Global Markets Inc., Morgan Stanley Senior Funding Inc. and J.P. Morgan Securities LLC are the joint lead arrangers on the deal. Citigroup is the administrative agent.

Commitments are due at 5 p.m. ET on Feb. 25, the source added.

Proceeds will be used with balance sheet cash to fund the acquisition of Viela Bio Inc. for $53.00 per share in cash, which represents a fully diluted equity value of $3.05 billion, or around $2.67 billion net of Viela Bio’s cash and cash equivalents.

Closing is expected in mid-March.

Horizon is a Dublin-based researcher and developer of medicines that address critical needs for people impacted by rare and rheumatic diseases. Viela Bio is a Gaithersburg, Md.-based biotechnology company dedicated to the discovery, development and commercialization of novel treatments for autoimmune and severe inflammatory diseases.

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