Covis trims secured bond offering to $350 million equivalent, drops $475 million tranche

By Paul A. Harris

Portland, Ore., Jan. 31 – Covis Pharma downsized its two-part offering of Covis Finco Sarl five-year first-lien senior secured notes (B2/B) to $350 million equivalent from $850 million equivalent and eliminated a proposed $475 million dollar-denominated tranche, according to market sources.

The downsized $350 million equivalent euro-denominated tranche (from $375 million equivalent) remains in the market with initial guidance in the 7% area and is expected to price during the Jan. 31 week, according to a bond trader.

Barclays is the left bookrunner. HSBC, Mizuho, MUFG, BNP Paribas and RBC are the joint bookrunners.

The Rule 144A and Regulation S for life notes come with two years of call protection.

Proceeds from the downsized bond offering were shifted to concurrent term loans, which grew to $850 million from $350 million.

The Zug, Switzerland-based specialty pharmaceutical company plans to use the proceeds plus proceeds from the upsized $850 million term loans to refinance debt, including debt incurred to finance products acquired from AstraZeneca.

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