Barclays Agents Jazz Pharmaceuticals Facilities Amendment
On January 23, 2014, Jazz Pharmaceuticals, as guarantor, and three of its wholly-owned subsidiaries, Jazz Pharmaceuticals, Jazz Financing I Limited and Jazz Pharmaceuticals Ireland Limited, as borrowers, entered into Amendment No. 2 dated as of June 12, 2012 as amended with lender parties thereto and Barclays Bank PLC, as administrative agent, collateral agent, letter of credit issuer and swing line lender, according to an 8-K filed January 23, 2014.
The amended credit agreement provides for a tranche of incremental term loans in the aggregate principal amount of $350 million, a tranche of term loans to refinance the $554 million aggregate principal amount of term loans previously outstanding under the existing credit agreement in their entirety and a revolving credit facility of $425 million that replaces the revolving credit facility of $200 million provided for under the existing credit agreement.
The revolving credit facility provides for revolving loans to be made to any of the borrowers. Jazz Pharmaceuticals used the proceeds from the incremental term loans and $300 million of loans under the revolving credit facility to purchase the Ordinary Shares and ADSs properly tendered and accepted for payment at the expiration of the offer as of January 22, 2014, and expects to use the proceeds from future loans under the revolver, if any, for general corporate purposes, including corporate development activities. The new term loans have the same June 12, 2018 maturity date that was applicable to the prior term loans. Loans under the revolver will have the same June 12, 2017 maturity date that was applicable under the existing credit agreement.
The new term loans bear interest at a rate equal to either the LIBOR rate, plus an applicable margin of 2.50% per annum (subject to a 0.75% LIBOR floor), or the prime lending rate, plus an applicable margin equal to 1.50% per annum (subject to a 1.75% prime rate floor). Loans under the revolver will bear interest at a rate equal to either the LIBOR rate, plus an applicable margin of 2.50% per annum, or the prime lending rate, plus an applicable margin equal to 1.50% per annum, subject to reduction by 0.25% or 0.50% based upon Jazz Pharmaceuticals’ secured leverage ratio.
Dublin, Ireland-based Jazz Pharmaceuticals is a specialty biopharmaceutical company that identifies, develops and commercializes products to address unmet medical needs in focused therapeutic areas.