| LONDON, July 18
LONDON, July 18 U.S. drugmaker AbbVie's
32 billion pounds acquisition of Dublin-based Shire Plc
is backed with a 13.5 billion pounds ($23.03 billion) bridge
loan, according to the company's filing with the Securities and
Exchange Commission in the US.
JP Morgan is the sole arranger and underwriter of the bridge
loan, which is expected to be refinanced with up to 15.5 billion
pounds of senior unsecured bonds that AbbVie is planning to
issue to cover the cash element of the acquisition.
AbbVie bought Shire on Friday in a $54.7 billion deal that
will allow it to slash its tax bill by relocating to Britain.
The bridge loan comprises a loan of up to 9.1 billion pounds
with a 364-day maturity, a 3.2 billion pounds loan with a
364-day maturity, and a 1.2 billion pounds facility with a
maturity of 60 days.
The financing pays an interest margin of 62.5 basis points
(bps) to 150bps over Libor, depending on rating of the merged
company after the acquisition.
There is also an initial commitment fee of 10bps on undrawn
amounts, which can ratchet in a range from 6bps to 17.5bps,
depending on the company's public debt rating after the
AbbVie is being encouraged to refinance the debt quickly by
a duration fee of 50bps, which is payable 90 days after closing.
This rises to 75bps 180 days after closing and to 100bps 270
days after closing.
Shire was advised by Goldman Sachs, Morgan Stanley, Deutsche
Bank, Evercore and Citigroup, while AbbVie was advised by J.P.
($1 = 0.5861 British Pounds)
(Editing by Tessa Walsh)