Perrigo Announces Proposed Public Offering Of Senior Notes Of Its Finance Subsidiary, Perrigo Finance Unlimited Company

Rhea-AI Summary

Perrigo Company plc (NYSE: PRGO) announced a public offering of senior notes by its wholly-owned finance subsidiary, Perrigo Finance Unlimited Company. The offering will fund the redemption of existing senior notes due in 2021, with any remaining proceeds allocated for general corporate purposes. The offering is dependent on market conditions, with BofA Securities, J.P. Morgan, and Wells Fargo Securities serving as joint book-running managers. The company emphasizes that this press release does not constitute an offer to sell securities.

Positive

• Funds will be used to redeem existing 3.500% Senior Notes due March 15, 2021, and December 15, 2021, improving financial stability.
• Involvement of reputable banks (BofA, J.P. Morgan, Wells Fargo) enhances credibility in the offering.

Negative

• Possible dilution of shareholder value if new notes do not significantly improve the company's financial standing.
• Dependence on market conditions could affect the pricing and acceptance of the offering.

News Market Reaction – PRGO

+1.85%

+1.85% Session move

In the trading session that priced this news, PRGO gained 1.85%, reflecting a mild positive market reaction.

Data tracked by StockTitan Argus on the day of publication.

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DUBLIN, June 16, 2020 /PRNewswire/ -- Perrigo Company plc ("Perrigo" or the "Company") (NYSE; TASE: PRGO), a leading global provider of Quality, Affordable Self-Care Products, today announced that Perrigo Finance Unlimited Company, an indirect wholly-owned finance subsidiary of Perrigo (the "Issuer"), commenced a registered public offering of senior notes (the "Notes"). The Notes will be fully and unconditionally guaranteed on a senior unsecured basis by the Company. The exact terms and timing of the offering will depend upon market conditions and other factors.

Perrigo intends to use the net proceeds of the Notes offering to fund the redemption of the Issuer's 3.500% Senior Notes Due March 15, 2021 and 3.500% Senior Notes Due December 15, 2021, with the balance, if any, for general corporate purposes, which may include the repayment or redemption of additional indebtedness.

BofA Securities, J.P. Morgan and Wells Fargo Securities are the joint book-running managers in the offering.

The offering is being made pursuant to an effective shelf registration statement filed with the Securities and Exchange Commission. The offering will be made only by means of a prospectus supplement relating to the offering and the accompanying base prospectus, copies of which may be obtained by contacting: BofA Securities, Inc. at dg.prospectus_requests@bofa.com or toll-free at (800) 294-1322; or by calling J.P. Morgan Securities LLC collect at (212) 834-4533; or by calling Wells Fargo Securities, LLC toll-free at (800) 645-3751 or emailing wfscustomerservice@wellsfargo.com.

About Perrigo

Perrigo Company plc (NYSE; TASE: PRGO) is dedicated to making lives better by bringing Quality, Affordable Self-care Products that consumers trust everywhere they are sold. The Company is a leading provider of over-the-counter health and wellness solutions that enhance individual well-being by empowering consumers to proactively prevent or treat conditions that can be self-managed. Visit Perrigo online at http://www.perrigo.com.

No Offer or Solicitation

This press release does not constitute an offer to sell, or an invitation to subscribe for, purchase or exchange, any securities, nor shall there be any sale, issuance, exchange or transfer of the securities referred to in this announcement in any jurisdiction in contravention of applicable law.

Cautionary Statement Regarding Forward-Looking Statements

This press release contains so-called "forward-looking statements" within the meaning of, and subject to the safe harbor created by, Section 21E of the Securities Exchange Act of 1934, as amended. These statements relate to future events or the Company's future financial performance and involve known and unknown risks, uncertainties and other factors that may cause the Company's, or its industry's, actual results, levels of activity, performance or achievements to be materially different from those expressed or implied by any forward-looking statements. In particular, statements about the Company's expectations, beliefs, plans, objectives, assumptions, future events or future performance contained in this press release, are forward-looking statements. In some cases, forward-looking statements can be identified by terminology such as "may," "will," "could," "would," "should," "expect," "plan," "anticipate," "intend," "believe," "estimate," "forecast," "predict," "potential" or the negative of those terms or other comparable terminology. The Company has based these forward-looking statements on its current expectations, assumptions, estimates and projections. While the Company believes these expectations, assumptions, estimates and projections are reasonable, such forward-looking statements are only predictions and involve known and unknown risks and uncertainties, many of which are beyond the Company's control. Risks and uncertainties include risks relating to the successful completion of the transactions contemplated herein. These and other important factors, including those discussed under "Risk Factors" in the Company's Annual Report on Form 10-K for the year ended December 31, 2019 and in the Company's subsequently filed Quarterly Report on Form 10-Q for the quarter ended March 31, 2020, and in any subsequent filings with the SEC and in other investor communications of the Company from time to time, may cause actual results, performance or achievements to differ materially from those expressed or implied by these forward-looking statements. The forward-looking statements in this document are made only as of the date hereof, and unless otherwise required by applicable securities laws, the Company disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

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SOURCE Perrigo Company plc

FAQ

What is the purpose of Perrigo's public offering of senior notes?

The proceeds will redeem existing senior notes due in 2021 and for general corporate purposes.

Who are the underwriters for Perrigo's senior notes offering?

BofA Securities, J.P. Morgan, and Wells Fargo Securities are the joint book-running managers.

What is the impact of the senior notes offering on PRGO shareholders?

It may lead to dilution of shareholder value, depending on how the funds affect overall company financial health.

When are the senior notes due that Perrigo intends to redeem?

The notes are due on March 15, 2021, and December 15, 2021.