Apr 5 2010
Patheon Inc. (TSX: PTI), a global provider of drug development and manufacturing services to the international pharmaceutical industry, announced today that it intends to commence a private placement of $280 million in aggregate principal amount of senior secured notes due 2017 (the "Offering"). The net proceeds of the Offering will be used to repay all of the outstanding indebtedness under the company's existing senior secured term loan and asset-based revolving credit facility, to repay certain other indebtedness and to pay related fees and expenses. The company intends to use any remaining proceeds for general corporate purposes.
Patheon also intends to amend and restate its existing $75 million asset based loan revolver subject to the substantially concurrent closing of the Offering and the satisfaction of certain customary closing conditions. As a result, the maturity date of this facility will be extended from 2012 to 2014. The consummation of the Offering is conditioned upon the substantially concurrent effectiveness of Patheon's amended and restated asset based loan revolver.
The notes have not been registered under the Securities Act of 1933, as amended (the "Securities Act"), or applicable state securities laws and may not be offered or sold in the United States absent registration or an applicable exemption from the registration requirements of the Securities Act and applicable state laws. Patheon is offering the notes only to qualified institutional buyers under Rule 144A under the Securities Act and to persons outside the U.S. pursuant to Regulation S.