Jazz Pharmaceuticals plc has announced a private offering of $850 million of exchangeable senior notes due 2030, with an option for an additional $150 million. The notes will be exchangeable under certain conditions, and the interest rate and other terms will be determined at the time of pricing. Jazz intends to use a portion of the net proceeds to prepay up to approximately $350 million of outstanding term loans and the remainder for general corporate purposes. If the initial purchasers exercise their option, Jazz expects to use the net proceeds for further prepayments of the term loans.
Concurrently, Jazz Pharmaceuticals also expects to repurchase up to $150 million of its ordinary shares from purchasers of the notes in privately negotiated transactions. The purchase price per ordinary share repurchased is expected to equal the closing price per ordinary share on the date of the offering. The company plans to pay for these repurchases with existing cash on hand as part of its share repurchase program announced in July 2024.
Jazz Pharmaceuticals plc (NASDAQ: JAZZ) is a global biopharma company with a diverse portfolio of marketed medicines, including leading therapies for sleep disorders and epilepsy, as well as a growing portfolio of cancer treatments. The company is headquartered in Dublin, Ireland, with research and development laboratories, manufacturing facilities, and employees in multiple countries committed to serving patients worldwide. As a result of these announcements, the company's shares have moved -1.2% on the market, and are now trading at a price of $107.14. For more information, read the company's full 8-K submission here.
