BioMarin Pharmaceutical Successfully Completes $850 Million Senior Notes Offering

BioMarin Pharmaceutical Completes Senior Notes Offering

BioMarin Pharmaceutical Inc., a leader in biotechnology focused on rare diseases, has officially announced the completion of its previously disclosed offering amounting to $850 million in senior unsecured notes. These notes, issued with an interest rate of 5.500% and set to mature in 2034, are part of BioMarin's strategy to financially support its pending acquisition of Amicus Therapeutics, Inc.

The offering of these senior notes represents a crucial step in reinforcing BioMarin’s financial standing, enabling the company to further its commitment to delivering innovative solutions for those suffering from genetically defined conditions. The acquisition of Amicus Therapeutics is expected to enhance BioMarin's portfolio and operational capabilities significantly.

The proceeds from this notes offering, combined with funds from a new $2 billion senior secured term loan facility, will not only finance the acquisition of Amicus but also cover related fees and expenses. BioMarin has strategically planned the financial architecture surrounding this acquisition, as it anticipates a robust integration process post-acquisition.

As part of this financial undertaking, BioMarin also plans to secure a $600 million senior secured revolving credit facility, which is projected to provide further liquidity and financial maneuverability in connection with the acquisition, giving BioMarin the ability to draw up to $150 million to manage any operational needs or unanticipated expenses.

The gross proceeds from the notes' offering were immediately placed into an escrow account, symbolizing the company’s cautious yet proactive approach to financial management in light of corporate transactions. However, there are defined stipulations; should the acquisition of Amicus not come to fruition by December 19, 2026, or should certain contingencies arise, BioMarin will be mandated to redeem the notes at their initial issue price along with accrued interest.

Furthermore, the notes will receive guarantees from various subsidiaries of BioMarin, including those of Amicus once the acquisition closes. This interconnectivity underscores the strategic importance of this deal for BioMarin’s future endeavors and the financial solidification it aims to achieve.

The indenture relating to the notes carries standard covenants restricting BioMarin and its subsidiaries from incurring additional debt, paying dividends, or engaging in certain transactions without explicitly defined exceptions. This prudent approach aims to maintain the stability and financial integrity of the company as it navigates this acquisition and potential expansion.

Importantly, these notes were not registered under the Securities Act of 1933, which means they are being offered only to qualified institutional buyers or non-U.S. persons, reflecting BioMarin's commitment to complying with regulatory considerations while pursuing its business objectives.

About BioMarin

Founded in 1997 and headquartered in San Rafael, California, BioMarin is recognized for its innovative approach in developing therapies for rare genetic disorders. With eight commercial therapies to its credit and a robust pipeline, BioMarin continues its mission to leverage genetic science to create transformative medicines that significantly improve patient lives. Its forward-looking strategies and robust financial maneuvers are integral as the company evolves and scales its operations.

Investors are advised that the details surrounding the acquisition and the financing transactions are subject to various risks, as outlined in BioMarin's filings with the Securities and Exchange Commission. As trends and market conditions shift, stakeholders are urged to stay informed on potential developments regarding these forward-looking statements.

BioMarin® is a registered trademark owned by BioMarin Pharmaceutical Inc.