UCB plans $800 million term loan for Zogenix purchase

By Sara Rosenberg

New York, Jan. 19 – UCB plans on getting an $800 million term loan to help fund its acquisition of Zogenix Inc., according to a company presentation.

Other funds for the transaction will come from available cash sources.

Under the agreement, Zogenix is being bought for $26.00 in cash per share, plus a contingent value right for a potential cash payment of $2.00 upon E.U. approval by Dec. 31, 2023, of Fintepla as an orphan medicine for treatment of Lennox-Gastaut syndrome.

The total transaction is valued at up to about $1.9 billion.

Closing is expected by the end of the second quarter.

Lazard and Barclays are acting as financial advisers to UCB in relation to the transaction. BofA Securities and SVB Leerink are acting as financial advisers to Zogenix.

UCB is a Brussels-based biopharmaceutical company. Zogenix is an Emeryville, Calif.-based biopharmaceutical company commercializing and developing therapies for rare diseases.

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