Biomarin Pharmaceutical Inc. (NASDAQ: BMRN) has announced its intention to offer $850 million of senior unsecured notes due 2034. This offering is part of the company's broader plan to fund the pending acquisition of Amicus Therapeutics, Inc. The company also launched the syndication of a new $2 billion senior secured term loan "B" facility, in addition to the existing $800 million senior secured term loan "A" facility, and a $600 million senior secured revolving credit facility.
To fund the acquisition and related fees and expenses, Biomarin intends to use the net proceeds from the notes offering, along with borrowings under the term facilities and cash on hand. The company may also borrow up to $150 million under the new revolving facility to cover such fees and expenses. The gross proceeds from the issuance of the notes will be deposited into an escrow account, pending the completion of the acquisition.
It's important to note that the notes will have joint and several guarantees by certain subsidiaries of Biomarin, as well as Amicus and certain of its subsidiaries after the acquisition closes. The notes are expected to have customary covenants that restrict certain actions, including incurring additional debt, paying dividends, making restricted payments, and engaging in consolidations and mergers.
The press release also highlights that the notes will not be registered under the Securities Act of 1933 and may not be offered or sold in the United States absent an effective registration statement or an applicable exemption from the registration requirements.
Following these announcements, the company's shares moved -0.87%, and are now trading at a price of $54.59. If you want to know more, read the company's complete 8-K report here.
