Daily News: February 12, 2016

CIT Arranges $190MM Financing for Vertical/Trigen, Osmotica Combination


CIT Healthcare Finance served as lead arranger for a $190 million senior secured credit facility to help finance the combination of Vertical/Trigen Holdings with Osmotica Holdings into one specialty pharmaceutical company.

“We are pleased to have completed this strategic combination, which brings together two highly complementary businesses with demonstrated track records of developing commercially successful pharmaceutical products,” said Brian Markison, CEO of Osmotica. “I look forward to working with the combined team to ensure that the new Osmotica builds on the strengths of both companies to deliver greater value for physicians, patients and the healthcare system overall. CIT’s healthcare finance expertise played a crucial role in helping to facilitate this transaction.”

The combined company will take on the Osmotica name. Senior financing was provided by CIT Bank, the principal bank subsidiary of CIT. Terms of the transaction were not disclosed.

“The pharmaceutical market continues to present strong investing opportunities for private equity firms such as Avista with deep sector experience,” said William Douglass, group head and managing director of CIT Healthcare Finance. “Together, the combination of Vertical/Trigen and Osmotica will create a vertically integrated specialty pharmaceuticals company with end-to-end capabilities across the pharmaceutical lifecycle, a diverse drug portfolio, a robust R&D platform, world class regulatory infrastructure, proprietary technology and proven distribution capabilities. We are pleased we could leverage our healthcare finance knowledge to help bring this transaction to completion.”

Osmotica Holdings is a specialty pharmaceutical company with a proprietary drug delivery system and a portfolio of branded and generic drugs with a focus in neuroscience/pain (CNS) therapeutics.

Vertical/Trigen, a portfolio company of Avista Capital Partners, is a specialty pharmaceutical company that develops and distributes branded and generic prescription pharmaceuticals.