Jazz Pharmaceuticals Announces Successful Completion of Term Loan Repricing and Irrevocable Election of Settlement Method for the 2.000% Exchangeable Senior Notes due 2026
Jazz Pharmaceuticals (Nasdaq: JAZZ) has successfully completed a repricing of its $2.7 billion U.S. dollar term loans. The applicable margin above Term SOFR has been reduced by 75 basis points, from 300 to 225 basis points, with the credit spread adjustment removed. This is expected to result in annual interest savings of approximately $23 million.
Additionally, Jazz Investments I , a subsidiary of Jazz Pharmaceuticals, has irrevocably elected to fix the settlement method for exchanges of its 2.000% Exchangeable Senior Notes due 2026. The new settlement method involves a combination of cash and ordinary shares, with a specified cash amount of at least $1,000 per $1,000 principal amount of notes exchanged.
Jazz Pharmaceuticals (Nasdaq: JAZZ) ha completato con successo una rimodulazione dei suoi prestiti a termine in dollari USA per un valore di 2,7 miliardi di dollari. Il margine applicabile sopra il Term SOFR è stato ridotto di 75 punti base, passando da 300 a 225 punti base, con la rimozione dell'aggiustamento dello spread creditizio. Ciò dovrebbe comportare risparmi annuali sugli interessi di circa 23 milioni di dollari.
Inoltre, Jazz Investments I, una sussidiaria di Jazz Pharmaceuticals, ha eletto irrevocabilmente di fissare il metodo di liquidazione per lo scambio dei suoi Note Senior Convertibili al 2,000% in scadenza nel 2026. Il nuovo metodo di liquidazione prevede una combinazione di contanti e azioni ordinarie, con un importo in contanti specificato di almeno 1.000 dollari per ogni 1.000 dollari di capitale delle note scambiate.
Jazz Pharmaceuticals (Nasdaq: JAZZ) ha completado con éxito un reajuste de sus préstamos a término en dólares estadounidenses por un total de 2,7 mil millones de dólares. El margen aplicable sobre el Term SOFR se ha reducido en 75 puntos básicos, pasando de 300 a 225 puntos básicos, con la eliminación del ajuste del diferencial crediticio. Se espera que esto resulte en ahorros anuales en intereses de aproximadamente 23 millones de dólares.
Además, Jazz Investments I, una subsidiaria de Jazz Pharmaceuticals, ha elegido irrevocablemente fijar el método de liquidación para el intercambio de sus Notas Senior Convertibles del 2,000% que vencen en 2026. El nuevo método de liquidación implica una combinación de efectivo y acciones ordinarias, con un monto específico en efectivo de al menos 1,000 dólares por cada 1,000 dólares del monto principal de las notas intercambiadas.
재즈 제약(Jazz Pharmaceuticals)(Nasdaq: JAZZ)은 27억 달러 규모의 미국 달러 정기 대출 재조정을 성공적으로 완료했습니다. 유효한 Term SOFR보다 적용되는 마진이 75bp 감소하여 300bp에서 225bp로 조정되었으며, 신용 스프레드 조정이 제거되었습니다. 이로 인해 약 2,300만 달러의 연간 이자 비용 절감이 기대됩니다.
추가로, 재즈 제약의 자회사인 Jazz Investments I는 2026년 만기를 가진 2.000% 전환 우선주를 교환하는 결제 방식을 확정적으로 선택했습니다. 새로운 결제 방식은 현금과 보통주를 조합한 방식이며, 교환되는 Notes의 원금 1,000달러당 최소 1,000달러의 현금액이 지정됩니다.
Jazz Pharmaceuticals (Nasdaq: JAZZ) a réussi à réaliser un ajustement de ses prêts à terme en dollars américains de 2,7 milliards de dollars. La marge applicable au-dessus du Term SOFR a été réduite de 75 points de base, passant de 300 à 225 points de base, avec la suppression de l'ajustement de l'écart de crédit. Cela devrait entraîner des économies d'intérêts annuelles d'environ 23 millions de dollars.
De plus, Jazz Investments I, une filiale de Jazz Pharmaceuticals, a choisi irrévocablement de fixer la méthode de règlement pour l'échange de ses Obligations Senior Échangeables à 2,000% arrivant à échéance en 2026. La nouvelle méthode de règlement implique une combinaison de liquidités et d'actions ordinaires, avec un montant de liquidités spécifié d'au moins 1 000 dollars pour chaque 1 000 dollars de montant nominal des obligations échangées.
Jazz Pharmaceuticals (Nasdaq: JAZZ) hat erfolgreich eine Neubewertung seiner 2,7 Milliarden US-Dollar-Darlehen abgeschlossen. Die anzuwendende Marge über Term SOFR wurde um 75 Basispunkte von 300 auf 225 Basispunkte gesenkt, und die Anpassung des Kreditausbreitungsstreuung wurde entfernt. Dies wird voraussichtlich zu jährlichen Zinseinsparungen von etwa 23 Millionen US-Dollar führen.
Darüber hinaus hat Jazz Investments I, eine Tochtergesellschaft von Jazz Pharmaceuticals, unwiderruflich beschlossen, die Abwicklungsmethode für den Austausch seiner 2,000% wandelbaren Senior Notes mit Fälligkeit 2026 festzulegen. Die neue Abwicklungsmethode umfasst eine Kombination aus Bargeld und Stammaktien, mit einem festgelegten Bargeldbetrag von mindestens 1.000 US-Dollar pro 1.000 US-Dollar Nennwert der ausgetauschten Anleihen.
- Reduced interest rate on $2.7 billion term loans by 75 basis points
- Expected annual interest savings of $23 million
- Fixed settlement method for 2026 Exchangeable Senior Notes, providing clarity for investors
- None.
Insights
Jazz Pharmaceuticals' Term Loan Repricing is a significant event for investors. The reduction in the applicable margin by <75 basis points> and the removal of the credit spread adjustment are expected to lead to
For retail investors, this repricing is a positive development. Lower interest expenses can improve
Investors should watch for any subsequent balance sheet improvements and management's strategic use of the interest savings to gauge the long-term benefits.
The irrevocable election of the settlement method for the <2.000% Exchangeable Senior Notes due 2026> is another noteworthy move. By fixing the settlement method to a combination of
This action reflects a proactive approach to managing potential conversion scenarios and aligns with market best practices. For investors, this reduces the uncertainty associated with the convertible debt structure, thereby potentially mitigating volatility in the stock. The company's ability to deliver up to $1,000 in cash per $1,000 principal amount of the notes instills confidence in its liquidity management.
From a legal standpoint, providing written notice to the exchange agent, trustee and noteholders about the settlement method signifies thorough
This move is beneficial for investors as it diminishes the likelihood of disputes or litigation related to the repayment or conversion of these notes. By setting clear terms, the company mitigates potential legal uncertainties that could arise from ambiguous settlement methods.
Irrevocable Election of Settlement Method for the
Jazz Investments I Limited (the "Issuer"), a subsidiary of Jazz Pharmaceuticals, today announced that it provided written notice to the exchange agent, the trustee and the holders of its
About Jazz Pharmaceuticals
Jazz Pharmaceuticals plc (Nasdaq: JAZZ) is a global biopharma company whose purpose is to innovate to transform the lives of patients and their families. We are dedicated to developing life-changing medicines for people with serious diseases — often with limited or no therapeutic options. We have a diverse portfolio of marketed medicines, including leading therapies for sleep disorders and epilepsy, and a growing portfolio of cancer treatments. Our patient-focused and science-driven approach powers pioneering research and development advancements across our robust pipeline of innovative therapeutics in oncology and neuroscience. Jazz is headquartered in Dublin, Ireland with research and development laboratories, manufacturing facilities and employees in multiple countries committed to serving patients worldwide. Please visit www.jazzpharmaceuticals.com for more information.
Caution Concerning Forward-Looking Statements
This press release contains forward-looking statements, including, but not limited to, statements related to anticipated interest savings; settlement and exchanges of the 2026 notes; and other statements that are not historical facts. These forward-looking statements are based on Jazz Pharmaceuticals' current plans, objectives, estimates, expectations and intentions and inherently involve significant risks and uncertainties. Do not place undue reliance on these forward-looking statements, which speak only as of the date hereof. Actual results and the timing of events could differ materially from those anticipated in such forward-looking statements as a result of these risks and uncertainties, which include, without limitation, the Company's ability to pay cash amounts and issue ordinary shares due upon exchange of the 2026 notes; the Company's ability to service its debt obligations; and other risks and uncertainties affecting Jazz Pharmaceuticals, including those described from time to time under the caption "Risk Factors" and elsewhere in Jazz Pharmaceuticals' Securities and Exchange Commission filings and reports, including Jazz Pharmaceuticals' Annual Report on Form 10-K for the year ended December 31, 2023, as supplemented by its Quarterly Report on Form 10-Q for the quarter ended March 31, 2024, and any future filings and reports by Jazz Pharmaceuticals. Other risks and uncertainties of which Jazz Pharmaceuticals is not currently aware may also affect Jazz Pharmaceuticals' forward-looking statements and may cause actual results and the timing of events to differ materially from those anticipated. The forward-looking statements herein are made only as of the date hereof or as of the dates indicated in the forward-looking statements, even if they are subsequently made available by Jazz Pharmaceuticals on its website or otherwise. Jazz Pharmaceuticals undertakes no obligation to update or supplement any forward-looking statements to reflect actual results due to any new information, future events, changes in its expectations or other circumstances that exist after the date as of which the forward-looking statements were made.
Contacts:
Investors:
Andrea N. Flynn, Ph.D.
Vice President, Head, Investor Relations
Jazz Pharmaceuticals plc
InvestorInfo@jazzpharma.com
Ireland +353 1 634 3211
U.S. +1 650 496 2717
Media:
Kristin Bhavnani
Head of Global Corporate Communications
Jazz Pharmaceuticals plc
CorporateAffairsMediaInfo@jazzpharma.com
Ireland +353 1 637 2141
U.S. +1 215 867 4948
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SOURCE Jazz Pharmaceuticals plc
FAQ
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