Jazz Pharmaceuticals expects to launch $600 million facility in May

By Sara Rosenberg

New York, April 27 - Jazz Pharmaceuticals plc is anticipated to hold a bank meeting sometime in May to launch a proposed $600 million credit facility, according to a market source.

Barclays Capital Inc. is the lead bank on the deal.

The facility consists of a $100 million revolver and a $500 million term loan, the source said.

Proceeds, along with cash on hand, will be used to help fund the acquisition of EUSA Pharma, a specialty pharmaceutical company with headquarters in Langhorne, Pa., and Oxford, U.K.

The purchase price is $650 million in cash plus a potential $50 million milestone payable based upon EUSA's lead product, Erwinaze, achieving a specified U.S. net sales target in 2013.

The transaction is expected to provide in 2013 additional revenue of $210 million to $230 million, additional adjusted EBITDA of $75 million to $85 million, and an additional $0.75 to $0.85 of adjusted earnings per share.

Closing is expected in June, subject to customary conditions and regulatory approvals, including antitrust approval in the U.S.

Jazz Pharmaceuticals is a Dublin, Ireland-based specialty biopharmaceutical company.

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