Concordia entered into a credit agreement with Goldman Sachs USA, Credit Suisse Securities (USA) and RBC Capital Markets encompassing an undrawn $200 million senior secured revolver and term loan facilities of $1,870 million — two tranches of $1.1 billion and £500 million ($773.58 million), respectively. The terms loans bear interest at LIBOR plus 4.25% and LIBOR plus 5.00%, respectively.
The company previously announced fully committed debt financing of approximately $2.8 billion. This debt financing will consist of the term loans, the senior notes of $790 million and equity bridge loans in the aggregate amount of $180 million. The $2.8 billion of debt financing and $520 million raised from the company’s recent public equity offering, along with cash on hand, will be used to fund the purchase price for AMCo, refinance certain Concordia and AMCo debt, and complete the acquisition.
As previously announced, following the closing of the acquisition, Concordia’s total debt, including both new debt and existing notes of $735 million, will have a maximum blended interest rate of approximately 7.25%.
Ontario-based Concordia is a diverse healthcare company focused on legacy pharmaceutical products and orphan drugs.