Daily News: December 27, 2017

Deutsche Bank Provides $500MM Term Loan for Mallinckrodt Sucampo Purchase

Mallinckrodt, a global specialty pharmaceutical company, agreed to acquire biopharmaceutical company Sucampo Pharmaceuticals, including its commercial and development assets, for $1.2 billion. The transaction was approved by the boards of directors of both companies and is subject to the customary closing conditions.

“Mallinckrodt’s acquisition of Sucampo is the latest milestone towards our vision of becoming an innovation-driven specialty pharmaceutical growth company focused on improving outcomes for patients with severe and critical conditions,” said Mark Trudeau, Chief Executive Officer and President of Mallinckrodt. “We look forward to adding the Sucampo portfolio and welcoming members of its team to Mallinckrodt.”

Sun Acquisition, a subsidiary of Mallinckrodt, will commence a cash tender offer to purchase all of the outstanding shares of Sucampo Pharmaceuticals’ common stock for $18.00 per share. The acquisition is expected to be funded through borrowings under Mallinckrodt’s existing revolving credit facility, a new secured term loan facility and/or cash on hand.

According to a related 8-K filing, Deutsche Bank AG New York Branch and Deutsche Bank Securities committed to provide up to $500 million for the term loan.

Following the transaction, Mallinckrodt intends to utilize its significant cash generation to focus on reducing outstanding debt over time.

Deutsche Bank served as Mallinckrodt’s exclusive financial advisor, with Wachtell, Lipton, Rosen & Katz acting as its legal advisor. Jefferies served as Sucampo’s exclusive financial advisor, with Cooley serving as its legal advisor.