UCB SA, Belgium’s biggest drugmaker by sales, plans to get 2 billion euros ($3 billion) of loans to
refinance debt used to buy Germany’s Schwarz Pharma AG.
It’s arranging a 500 million-euro 364-day term loan and 1.5 billion euros of three-year revolving credit with a one-year extension option, the Brussels-based company said in an e-mailed statement. BNP Paribas Fortis, Commerzbank AG, and Mizuho Financial Group Inc. are arranging the deal.
UCB wants to refinance 3.3 billion euros of outstanding debt it took to buy Schwarz Pharma in 2007, and for general
corporate purposes, the company said. The maker of allergy treatment Zyrtec bought Schwarz Pharma for 4.4 billion euros to add new medicines as its Keppra epilepsy drug lost patent protection.
The company in September sold 500 million euros of 4.5 percent convertible bonds and in October priced 750 million
euros of 5.75 percent senior secured notes maturing in 2014, according to data compiled by Bloomberg.
“Following the successful capital market issues announced previously, this bank refinancing will form part of the funding diversification program,” according to the company. It plans to sign the loan before the end of the year, it said.
UCB is paying interest of 150 basis points more than the euro interbank offered rate for the loans it signed in 2006 for the Schwarz Pharma acquisition, Bloomberg data show. A basis point is 0.01 percentage point.
refinance debt used to buy Germany’s Schwarz Pharma AG.
It’s arranging a 500 million-euro 364-day term loan and 1.5 billion euros of three-year revolving credit with a one-year extension option, the Brussels-based company said in an e-mailed statement. BNP Paribas Fortis, Commerzbank AG, and Mizuho Financial Group Inc. are arranging the deal.
UCB wants to refinance 3.3 billion euros of outstanding debt it took to buy Schwarz Pharma in 2007, and for general
corporate purposes, the company said. The maker of allergy treatment Zyrtec bought Schwarz Pharma for 4.4 billion euros to add new medicines as its Keppra epilepsy drug lost patent protection.
The company in September sold 500 million euros of 4.5 percent convertible bonds and in October priced 750 million
euros of 5.75 percent senior secured notes maturing in 2014, according to data compiled by Bloomberg.
“Following the successful capital market issues announced previously, this bank refinancing will form part of the funding diversification program,” according to the company. It plans to sign the loan before the end of the year, it said.
UCB is paying interest of 150 basis points more than the euro interbank offered rate for the loans it signed in 2006 for the Schwarz Pharma acquisition, Bloomberg data show. A basis point is 0.01 percentage point.
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