Padagis readies launch of $850 million term loan B for Wednesday

By Sara Rosenberg

New York, June 15 – Padagis LLC is scheduled to hold a lender call at 12:30 p.m. ET on Wednesday to launch an $850 million seven-year term loan B (B1/B), according to a market source.

JPMorgan Chase Bank and Goldman Sachs Bank USA are the lead arrangers on the deal.

Price talk on the term loan B is Libor plus 475 basis points with a 25 bps step-down at 0.5x inside closing date net first-lien leverage, a 0.5% Libor floor and an original issue discount of 99, the source said.

The term loan has 101 soft call protection for six months.

Commitments are due at 5 p.m. ET on June 29, the source added.

Proceeds will be used to help fund the acquisition of Perrigo Co. plc’s prescription pharmaceuticals business, which will be renamed Padagis, by Altaris Capital Partners LLC for total consideration of $1.55 billion, including $1.5 billion in cash and the assumption of more than $50 million in potential R&D milestone payments and contingent purchase obligations with third-party Rx partners.

Closing is expected by the end of the third quarter, subject to customary conditions.

Padagis is a prescription pharmaceutical company.

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