Catalent Pharma Solutions amended its existing credit agreement with JPMorgan Chase Bank as both administrative and collateral agent, to provide for, among other things, $950 million in incremental term loans and a $350 million increase to its revolving credit facility.
The proceeds of the incremental term loans were used to fund a portion of Catalent’s acquisition of Paragon Bioservices, a viral vector development and manufacturing partner for gene therapies, as well as to pay fees, costs and expenses incurred in connection with the transactions. The funds will also be used for general working capital purposes, for capital expenditures of Paragon and to prepay a portion of the company’s existing term loans.
With the addition of Paragon’s specialized expertise in adeno-associated virus vectors, the most commonly used vector to deliver DNA to cells, Catalent is positioned to capitalize on strong industry tailwinds in the potentially $40 billion addressable market for gene therapies. Paragon also brings to Catalent its unique and differentiated scientific, development, and manufacturing capabilities, which will fundamentally enhance Catalent’s biologics business and end-to-end integrated biopharmaceutical solutions for customers.
Paragon has GMP manufacturing projects underway with more than half of the top 40 leading gene therapy developers worldwide. Catalent is committed to continuing the resource dedication for Paragon’s customers and maintaining a flexible and reliable development and manufacturing partnership for its clients. The company currently employs over 380 individuals at its two Baltimore-area sites, all of whom will join the existing Catalent team of over 11,000 employees.
In connection with the acquisition of Paragon, Catalent completed the issuance of $650 million of a new series of convertible preferred stock to funds affiliated with Leonard Green & Partners. Effective as of the closing of the acquisition, Peter Zippelius, a partner at Leonard Green & Partners, joined Catalent’s Board of Directors.
Headquartered in Somerset, NJ, Catalent is a diversified provider of advanced delivery technologies and development solutions for drugs, biologics and consumer health products. Catalent employs over 11,000 people, including over 1,800 scientists, at more than 30 facilities across five continents.
Category: ABL Deals
Tags: Catalent Pharma Solutions, JPMorgan Chase Bank, Paragon Bioservices
