BioMarin Unveils Plans for $850 Million Senior Note Offering and $2 Billion Secured Loan
BioMarin Pharmaceutical Announces Financial Offerings
BioMarin Pharmaceutical Inc. has declared its intention to launch a private offering of senior unsecured notes amounting to $850 million, with a maturity due in 2034. This is part of the company's strategic move amidst the upcoming acquisition of Amicus Therapeutics, Inc.. Along with the senior notes, BioMarin is also seeking to syndicate a $2 billion senior secured term loan facility designated as Term Loan B. This facility is in conjunction with an existing $800 million Term Loan A facility and a $600 million revolving credit facility, all tied to the pending acquisition.
Strategic Financial Moves
The primary aim of these financial instruments is to facilitate the acquisition of Amicus Therapeutics. BioMarin plans to employ proceeds from the note offering along with borrowings from the Term Loans, supplemented by available cash, to fund the acquisition price and associated expenses. Additionally, there is scope to borrow as much as $150 million from the new revolving credit facility to cover any immediate fees and expenditures related to the acquisition.
Escrow Arrangements
Notably, gross proceeds from the issuance of the senior notes will be kept in an escrow account until the point at which the acquisition is completed. Should this acquisition be incomplete by December 19, 2026, or should certain specified events take place, BioMarin is obligated to redeem the senior notes at their original issue price, coupled with any accrued interest.
Regulatory Implications
The offering of these senior notes falls under certain regulatory constraints. They will not be registered under the Securities Act of 1933, limiting their distribution to a select few—namely those considered as “qualified institutional buyers.” Furthermore, some of BioMarin's subsidiaries are set to guarantee these notes after the acquisition is finalized.
The governing terms of the notes will incorporate standard covenants that aim to limit BioMarin and its subsidiaries' ability to take on additional debt, declare dividends, and dispose of significant assets, thus ensuring the financial stability of the company during this period of transition.
A Glimpse into BioMarin
BioMarin, headquartered in San Rafael, California, is a global biotechnology leader known for its commitment to developing treatments for individuals impacted by rare genetic diseases. Established in 1997, the company boasts a robust portfolio, including eight commercially available therapies and a solid pipeline of clinical trials. They prioritize innovative approaches in drug discovery, consistently pushing the boundaries of genetic science with the potential for transformative impact on patient lives.
Investors are reminded that forward-looking statements included in this announcement come with inherent uncertainties and risks. Unexpected developments could affect the anticipated timeline and outcomes regarding the offering of these notes and the acquisition itself.
In conclusion, BioMarin's recent announcements highlight a significant step in its growth strategy, as it aims to solidify its position in the biotech field through smart financial planning and strategic acquisitions.
Topics Financial Services & Investing）
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