AMAG Pharmaceuticals flexes $350 million loan to Libor plus 375 bps

By Sara Rosenberg

New York, Aug. 12 – AMAG Pharmaceuticals Inc. trimmed pricing on its $350 million six-year senior secured covenant-light term loan (Ba2/BB) to Libor plus 375 basis points from Libor plus 400 bps, according to a market source.

In addition, the original issue discount on the term loan was tightened to 99.75 from talk of 99 to 99.5 and the MFN sunset provision was eliminated, the source said.

The term loan still has a 1% Libor floor and 101 soft call protection for six months.

Jefferies Finance LLC and Barclays are the joint lead arrangers on the debt.

Recommitments were due on Wednesday, the source added.

Proceeds will be used to help fund the acquisition of Cord Blood Registry, a stem cell collection and storage company serving pregnant women and their families, from GTCR for $700 million, and to repay AMAG’s existing roughly $320 million senior secured term loan.

The company is also issuing $500 million of senior notes, upsized from $450 million. The extra proceeds being raised from the upsizing will add cash to the balance sheet.

Closing is expected in the third quarter, subject to customary conditions, including expiration or termination of the waiting period under the Hart-Scott-Rodino Antitrust Improvements Act of 1976.

AMAG is a Waltham, Mass.-based specialty pharmaceutical company.

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