Meda suitor Mylan raising funds to finance acquisition
Mylan [NASDAQ, TASE: MYL], a Netherlands-based pharmaceutical company, is raising funds to finance its acquisition of Meda [STO:MEDA-A].
Mylan N.V. announced the pricing of a private placement of USD 6.5bn aggregate principal amount of senior notes, comprised of USD 1.0bn aggregate principal amount of 2.50% senior notes due 2019 at an issue price of 99.888%, USD 2.25bn aggregate principal amount of 3.15% senior notes due 2021 at an issue price of 99.884%, USD 2.25bn aggregate principal amount of 3.95% senior notes due 2026 at an issue price of 99.231% and USD 1.0bn aggregate principal amount of 5.25% senior notes due 2046 at an issue price of 99.984%.
Mylan intends to use the net proceeds from the offering of notes to finance its previously announced public offer (the “Offer”) to acquire all of the outstanding shares of Meda AB (publ.) (the “Meda Acquisition”), to repay, prepay, redeem or otherwise refinance its or any of its subsidiaries’ indebtedness (including that of Meda and its subsidiaries) (the “Refinancing”) and to pay costs associated with the Meda Acquisition and the Refinancing, including non-periodic fees, costs and expenses, stamp registration and other taxes.
Upon completion of the offering of the notes, Mylan intends to reduce the commitments under its Bridge Credit Agreement, dated as of 10 February 2016, in an amount equal to the aggregate net proceeds from the offering of the notes. Subject to customary closing conditions, the sale of the notes is expected to close on or about 9 June 2016.
The notes will be sold only to qualified institutional buyers in the United States in reliance on Rule 144A under the Securities Act of 1933, as amended (the “Securities Act”), and outside the United States to non-U.S. persons in reliance on Regulation S under the Securities Act.
The proposed issuance of the notes will not be registered under the Securities Act, and may not be offered or sold in the United States absent registration or an applicable exemption from registration requirements.