Covis Pharma revises structure for term loan financing; commits due Feb. 11

Lead arranger Barclays has revised terms on the term loan B financing for Covis Pharma BV that will be used to refinance existing debt and debt incurred to finance products acquired from AstraZeneca, according to sources. Final commitments will be due by 8 a.m. ET on Feb. 11, with allocations expected to follow thereafter.

The financing now consists of a $595 million dollar-denominated first-lien term loan, upsized from $550 million previously; a $350 million-equivalent euro-denominated first-lien term loan, shifted from a previously planned $350 million-equivalent euro-denominated offering of senior secured notes; and a $312 million, seven-year second-lien term loan that was upsized by $12 million and will be priced at 975 basis points over the secured overnight financing rate plus a credit spread adjustment, with a 1% floor.

The five-year dollar-denominated first-lien term loan remains offered at 650 basis points over the secured overnight financing rate plus a credit spread adjustment, with a 0.75% floor and an original issue discount of 93. Lenders are offered 12 months of 101 soft call protection and the loan will amortize at 5% per annum. The credit spread adjustment is 10 bps for a one-month rate, 15 bps for a three-month rate and 25 bps for a six-month rate. At talk, yield to maturity is approximately 9.56%.

The five-year euro-denominated term loan is offered at E+650, with a 0% floor and an OID of 93. Lenders are offered 12 months of 101 soft call protection and the term loan will amortize at 2.5%, 2.5%, 5%, 7.5% and 7.5% in years one through five, respectively. At talk, yield to maturity is approximately 8.59%.

S&P Global Ratings has assigned preliminary first-lien term loan and issuer ratings of B, with a 3 recovery rating and a stable outlook. Moody's has assigned first-lien and issuer ratings of B2, with a stable outlook. The borrower is Covis Finco SARL.

Covis Pharma, backed by Apollo Global Management, distributes pharmaceutical products for patients with life-threatening conditions and chronic illnesses.