GREENFIELD, Ind .– () – Elanco Animal Health Incorporated (NYSE: ELAN) announced today that it has successfully priced its senior secured credit facilities, consisting of (i) Term Loan Facility B d ” a total principal amount of $ 4,275.0 million with a term of seven years and (ii) a revolving credit facility of up to $ 750.0 million with a term of five years. The amount of the B term loan facility has been increased from the original amount of $ 2,425.0 million due to market demand. The term loan facility B will be valued at par at LIBOR plus 175 basis points and the revolving loan facility is expected to bear interest at LIBOR plus an applicable margin of between 1.50% and 2.25% per annum based on Elanco’s corporate family or corporate credit rating. rating.

Elanco intends to use the proceeds from the term loans under the New Credit Facilities, as well as the proceeds from the recently completed Common Share and Tangible Equity Unit offers, to fund the cash portion of the the previously announced acquisition of the animal health business of Bayer AG and to pay related fees and expenses.

Due to the increase in term loan facility B, Elanco has secured substantially all of the financing required to complete the acquisition of the animal health business of Bayer AG and does not currently intend to pursue an A term loan facility or secured note offering.

ABOUT ELANCO

Elanco (NYSE: ELAN) is a global animal health company that develops knowledge products and services to prevent and treat disease in food and companion animals in more than 90 countries. With a 65-year heritage, we rigorously innovate to improve animal health and benefit our customers, while fostering an inclusive and cause-oriented culture for more than 5,800 employees. At Elanco, we’re driven by our vision of food and life-enriching companionship – all to advance the health of animals, people, and the planet.

Forward-looking statements

Statements in this press release that are not strictly historical, including statements regarding the acquisition, the new credit facilities, and any other statements regarding events or developments which we or we anticipate will or may occur. occur in the future, may be “forward-looking” statements within the meaning of the Private Securities Litigation Reform Act of 1995, and involve a number of risks and uncertainties. There are a number of important factors that could cause actual events to differ materially from those suggested or indicated by these forward-looking statements, and you should not place undue reliance on such forward-looking statements. These factors include risks and uncertainties relating to, among other things: (1) the inability to complete the acquisition in a timely manner; (2) failure to close the acquisition for any other reason; (3) the possibility that the integration of the animal health business of Bayer AG and its operations with those of Elanco will be more difficult and / or take longer than expected, be more costly than expected and may have unanticipated negative effects on the business of Bayer AG the animal health business or existing business of Elanco; (4) the effect of the announcement of the price of the new credit facilities on the respective business relationships of Elanco or Bayer AG, results of operations and the business in general; (5) distract the management of Elanco and Bayer AG from ongoing business concerns; (6) the ability to obtain or consume debt or equity financing or acquisition-related refinancing on acceptable terms or not at all; (7) risks associated with third party contracts containing consent and / or other provisions that may be triggered by the acquisition; (8) the negative effects of the announcement or completion of the acquisition on the market price of Elanco ordinary shares, including to the extent that this has an impact on the consideration in Elanco ordinary shares due to Bayer AG upon completion of the acquisition; (9) Elanco’s ability to retain and hire key personnel; (10) management’s response to any of the above factors; and (11) other factors that may affect Elanco’s future results described in the section entitled “Risk Factors” in Elanco’s Prospectus Supplements, filed with the Securities and Exchange Commission (the “SEC” January 24, 2020), and other documents filed by Elanco with the SEC. Forward-looking statements made here speak only as of the date hereof and Elanco assumes no obligation to update or revise any forward-looking statement, whether as a result of new information, future events and developments, or otherwise, unless required by law.

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