Mallinckrodt plans new term loan, notes for Questcor purchase

By Sara Rosenberg

New York, April 7 - Mallinckrodt plc plans to get a new senior secured term loan and issue senior notes to help fund its acquisition of Questcor Pharmaceuticals Inc., according to an 8-K filed with the Securities and Exchange Commission on Monday.

The term loan commitment is for up to $1.35 billion, and backing the notes is a commitment for up to $500 million of unsecured bridge loans.

Barclays is the lead bank on the debt financing.

Under the agreement, Questcor is being bought for $30.00 per share in cash and 0.897 Mallinckrodt shares for each share of Questcor common stock for a total consideration of about $86.10 per Questcor share. The transaction is valued at about $5.6 billion.

Closing is expected in the third quarter, subject to the approval of the shareholders of both companies and Hart-Scott-Rodino clearance.

Mallinckrodt is a Dublin-based pharmaceutical company. Questcor is an Anaheim Hills, Calif.-based biopharmaceutical company.

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