Alkermes plc Announces Pricing of New Term Loans
-- Term Loans Part of Debt Refinancing and Expected to Close on Sept.
25, 2012 --
DUBLIN--(BUSINESS WIRE)--Sep. 19, 2012--
plc (NASDAQ: ALKS) today announced the pricing of new term loans to
be used in the refinancing of its existing senior secured bank debt.
Syndication has completed for the new senior secured bank debt,
comprising First Lien Term Loan facilities consisting of a $300 million,
seven-year Term Loan bearing interest at LIBOR plus 3.50% and a $75
million, four-year Term Loan bearing interest at LIBOR plus 3.00%. Under
each of these term loans, LIBOR is subject to an interest rate floor of
1.00%. The company expects the refinancing to close on Sept. 25, 2012,
subject to customary closing conditions.
Together with cash on hand, the $375 million in new senior secured bank
debt borrowed by Alkermes, Inc. will be used to retire the balance of
its $450 million of existing senior secured bank debt, consisting of a
$310 million, six-year First Lien Term Loan bearing interest at LIBOR
plus 5.25% and a $140 million, seven-year Second Lien Term Loan bearing
interest at LIBOR plus 8.00%. Under each of these term loans, LIBOR was
subject to an interest rate floor of 1.50%.
Morgan Stanley Senior Funding, Inc. is the administrative agent and
collateral agent for the new senior secured credit facilities and Morgan
Stanley Senior Funding, Inc., J.P. Morgan Securities LLC, and Citigroup
Global Markets, Inc. are acting as joint lead arrangers, joint
bookrunners and co-syndication agents for the new senior secured credit
About Alkermes plc
Alkermes plc is a fully integrated, global biopharmaceutical company
that applies its scientific expertise and proprietary technologies to
develop innovative medicines that improve patient outcomes. The company
has a diversified portfolio of more than 20 commercial drug products and
a substantial clinical pipeline of product candidates that address
central nervous system (CNS) disorders such as addiction, schizophrenia
and depression. Headquartered in Dublin, Ireland, Alkermes plc has an
R&D center in Waltham, Massachusetts; a research and manufacturing
facility in Athlone, Ireland; and manufacturing facilities in
Gainesville, Georgia and Wilmington, Ohio. For more information, please
visit Alkermes’ website at www.alkermes.com.
Note Regarding Forward-Looking Statements
Certain statements set forth above may constitute forward-looking
statements within the meaning of the Private Securities Litigation
Reform Act of 1995, including, but not limited to, statements concerning
the pricing of new term loans. Although the company believes that such
statements are based on reasonable assumptions within the bounds of its
knowledge of its business and operations, the forward-looking statements
are neither promises nor guarantees; the company’s business is subject
to significant risk and uncertainties, and there can be no assurance
that its actual results will not differ materially from its expectations.
These risks and uncertainties include, among others: whether the
refinancing will be completed on Sept. 25, 2012 or at all; and those
risks described in the company’s Annual Report on Form 10-K for the year
ended March 31, 2012, and in other filings made by the company with the
Securities and Exchange Commission (“SEC”) and which are available at
the SEC’s website at www.sec.gov.
The information contained in this press release is provided by the
company as of the date hereof and, except as required by law, the
company disclaims any intention or responsibility for updating any
forward-looking information contained in this press release.
Source: Alkermes plc
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