Commentary & Deal Flow

Grifols Escrow Issuer SAU (Grifols SA) (GRFSM) EUR2bn equivalent (EUR/USD) 144A/Reg S sr notes 7yNC3 2-part. Expect B2/B (negative/negative). Via BofA sole. No reg rights. List Dublin. NY law. SMR at 100 if the acquisition is not completed by the outside date. Tranche sizes TBD.

    - EUR TBD sr notes due 2028 (7y). NC3. On or prior to the consummation of the acquisition, up to EUR500m (Capped Redemption) of the notes (liked to the take-up of the Biotest VTO) at par plus AI up to the date of the redemption. IPT: 4% area.

    - US$ TBD sr notes due 2028 (7y). NC3. On or prior to the consummation of the acquisition, up to EUR500m (Capped Redemption) of the notes (liked to the take-up of the Biotest VTO) at par plus AI up to the date of the redemption. IPT: low-mid 5s.

   Investor calls at 9:45am UKT and 11:45am NYT today (also did a series of fixed income calls starting 09/21). Pricing tomorrow.  UOP: EUR1.9bn to finance the acquisition of Biotest AG for about EUR1.6bn equity value (EUR43 per ordinary share and EUR37 per pfd share) or EUR1.9bn enterprise value, and EUR104m for GCP. The acquisition will first be completed by the purchase of the equity interest owned by Tiancheng Intl Investment Ltd in Biotes (89.88% ordinary shares and 1.08% pfd shre of Biotest and then a tender offer for the remaining ordinary and pfd shares of Biotest). Biz:  a global healthcare company and industry leader in the production of plasma-derived medicines and transfusion medicine. HQ: Barcelona, Spain. (Acquisition announced 09/17/21).