Date: 2015-03-12
Type of information: Loan
Company: Depomed (USA - CA)
Investors: Deerfield (USA - NY) Pharmakon (USA)
Amount: $575 million
Funding type: loan
Planned used: The proceeds of the loan will be used to fund the acquisition of the U.S. rights to the Nucynta® franchise from Janssen Pharmaceuticals which Depomed announced on January 15 , 2015. Upon signing the acquisition agreement in January, Depomed placed $500 million into escrow. The escrowed amount and the proceeds of this loan will satisfy the $1.05 billion acquisition price and fees related to the transactions. The Nucynta® franchise includes Nucynta® ER (extended release tablets) for the management of pain, including neuropathic pain associated with diabetic peripheral neuropathy (DPN), severe enough to require daily, around-the-clock, long-term opioid treatment, and Nucynta® (IR), an immediate release version of Nucynta®, for management of moderate to severe acute pain in adults. The acquisition will make Nucynta® the flagship asset in Depomed\'s growing portfolio of pain and neurology specialty pharmaceuticals.
Others: * On March 12, 2015, Depomed announced that it has entered into a definitive agreement with Deerfield and Pharmakon Advisors, LP to borrow $575 million. The proceeds of the loan will be used to fund the acquisition of the U.S. rights to the Nucynta® franchise from Janssen Pharmaceuticals, Inc. which Depomed announced on January 15 , 2015. Upon signing the acquisition agreement in January, Depomed placed $500 million into escrow. The escrowed amount and the proceeds of this loan will satisfy the $1.05 billion acquisition price and fees related to the transactions. The loan will have a term of seven years, will be secured by Depomed\'s assets and will bear interest at the rate of 9.75% over three month LIBOR, with a floor of 1% and subject to certain caps. The loan can be prepaid under certain conditions and at Depomed\'s discretion any time after the second anniversary. $100 million of the facility may be paid down after one year. The loan financing and the acquisition of Nucynta® are subject to customary closing conditions, including HSR review. Depomed now expects the loan financing and the acquisition to close in April 2015.
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