Perrigo gives details of new $1 billion five-year revolver

By Wendy Van Sickle

Columbus, Ohio, April 20 – Perrigo Co. plc’s new credit facilities include a $1 billion five-year revolver, in addition to $1.6 billion of previously announced term loans, according to an 8-K filing with the Securities and Exchange Commission.

The new credit facilities were entered on April 20 by wholly owned subsidiary Perrigo Investments, LLC.

The new revolver replaced the company’s existing revolver entered on March 8, 2018 and bears interest at SOFR plus 10 basis points CSA plus a margin that is initially 175 bps and may range from 137.5 bps to 200 bps, depending on leverage ratio. The commitment fee is initially 22.5 bps and may range from 17.5 bps to 25 bps, based on leverage ratio.

As reported, the company also obtained a $1.1 billion seven-year first-lien term loan B, of which $400 million is a delayed-draw tranche, and a five-year $500 million term loan A.

Pricing on the term loan B is SOFR+10 bps CSA plus 250 bps. 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.

Interest on the term loan A is the same as that of the 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.

JPMorgan is the administrative agent. Wells Fargo Bank, NA is the syndication agent.

The revolver will be used for general corporate purposes.

Term loan 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.

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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