Genmab Plans $2.5B Note Offering and $2B Loan for Merus Acquisition
- Genmab offers $1.5B secured notes due 2032 and $1B unsecured notes due 2033.
- A new $2B senior secured term loan 'B' facility is launched.
- Funds will support the acquisition of Merus N.V.
- Notes secured by Genmab assets, subject to covenants.
Note Offering and Loan Details
Genmab A/S and its subsidiary, Genmab Finance LLC, plan to offer $1.5 billion in senior secured notes due 2032 and $1 billion in senior unsecured notes due 2033. Additionally, they have launched a $2 billion senior secured term loan "B" facility, supplementing a previously syndicated $1 billion term loan "A" facility and a $500 million revolving credit facility.
Purpose of Funds
The proceeds from the notes and loans, along with cash on hand, will be used to finance the acquisition of Merus N.V. This includes covering the purchase price, related fees, and expenses associated with the acquisition and financing arrangements.
Security and Guarantees
Before the acquisition closes, the notes and related guarantees will be secured by segregated securities accounts holding the gross proceeds. Post-acquisition, the secured notes will have a first priority security interest in certain Genmab assets, with guarantees provided by specific subsidiaries.
Covenants and Restrictions
The indentures for the notes will include customary covenants, limiting Genmab and its subsidiaries' ability to incur additional debt, pay dividends, and engage in asset sales or mergers, among other restrictions.
Source: Genmab