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Perrigo lifts term loan B to $1.1 billion, term A to $500 million
By Sara Rosenberg
New York, April 6 – Perrigo Co. plc upsized its seven-year first-lien term loan B, of which $400 million is a delayed-draw tranche, to $1.1 billion from $800 million and upsized its five-year term loan A to $500 million from $300 million, according to a market source.
Additionally, pricing on the term loan B was lowered to SOFR+10 basis points CSA plus 250 bps from talk in the range of 275 bps to 300 bps, and the original issue discount was tightened to 99.25 from 98.5, the source said.
As before, the term loan B has a 25 bps step-down at 0.5x inside closing date total net leverage, a 0.5% floor and 101 soft call protection for six months.
The company’s now $2.6 billion of senior secured credit facilities, up from $2.1 billion previously, also include a $1 billion five-year revolver.
JPMorgan Chase Bank, Morgan Stanley Senior Funding Inc., Wells Fargo Securities LLC, BofA Securities Inc. and HSBC Securities (USA) Inc. are the joint lead arrangers on the deal.
Recommitments were scheduled to be due at 11:30 a.m. ET on Wednesday, the source added.
Proceeds will be used with cash on hand to fund the acquisition of Hera SAS (HRA Pharma), to refinance an existing term loan A due August 2022 and to redeem $369 million of existing notes due 2023.
The previously planned $500 million notes offering was cancelled with the upsizing of the term loans.
Under the agreement, Hera is being bought from Astorg and Goldman Sachs Asset Management in a transaction valued at €1.8 billion.
Closing is expected by the end of the first half of this year, subject to customary conditions, including regulatory approvals.
Perrigo is a Dublin-based provider of self-care products and over-the-counter health and wellness solutions. Hera is a Paris-based consumer self-care company.
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