Horizon Therapeutics inks commitment for $1.3B term loan for Viela Bio buy

Horizon Therapeutics PLC disclosed that the company has entered into a commitment letter with Citi and Morgan Stanley providing a $1.3 billion incremental term loan in connection with its planned $3.05 billion acquisition of Viela Bio, which is expected to close by the end of the first quarter of 2021.

As detailed in a commitment letter, the term loan is outlined to be structured as a covenant-lite incremental term loan, with a seven-year maturity.

As of Sept. 30, the company had roughly $418 million outstanding under its term loan B due May 2026. In December 2019, Horizon repriced the loan to L+225, with a 0% Libor floor and a 25 bps step-down.

Horizon Therapeutics is an Ireland tax-registered biopharmaceutical company focused on developing and commercializing medicines to treat arthritis, pain, and inflammatory diseases.