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Stiefel Trades On Break

12 Jan 2007

Stiefel Laboratories' term loan broke last Wednesday around 100 1/2-101, tightened a bit during the day and was trading around 100 3/4-101 by day's end.

Stiefel Laboratories' term loan broke last Wednesday around 100 1/2-101, tightened a bit during the day and was trading around 100 3/4-101 by day's end. About $50 to $75 million traded. "It was reasonably active," one dealer said.

Two weeks ago Deutsche Bank, which leads the credit, flexed pricing down 25 basis points on the first lien (CIN, 1/8). The deal consists of a $623 million first-lien term loan priced at LIBOR plus 2 1/4% and a $75 million revolver priced at LIBOR plus 2 1/2%. There is also a $150 million second-lien term loan priced at LIBOR plus 5% with call protection of 102, 101.

The deal backs the acquisition of Palo Alto, Calif.-based Connetics Corp., which was completed Dec. 28. Coral Gables, Fla.-based Stiefel is a pharmaceutical company specializing in dermatology; brands include Sarna and Duac. Connetics was a publicly held pharmaceutical company also focused on developments for the dermatology market. A Stiefel spokeswoman declined comment.

12 Jan 2007