Catalent (NYSE:CTLT) said today that its subsidiary, Catalent Pharma Solutions, plans to offer $450 million in senior unsecured notes due 2026.
The private offering will be used to fund, in part, the drug-delivery company’s $950 million purchase of biologics manufacturer, Cook Pharmica.
The private offering comes on the heels of an underwritten public offering that the company priced last month.
Cook Pharmica, a unit of privately-held medical device maker Cook Group, is a contract manufacturer that develops biologics-based drug compounds.
The acquisition, which was announced in Sept., readies Catalent for an expansion of its biologics biz, giving it access to Cook Pharmica’s Indiana-based facility.
According to the deal, Catalent will pay $750 million when the deal closes. The rest of the payment will come in four annual installments. In its last fiscal year, Cook Pharmica reeled in $179 million in revenue, Reuters said.
CTLT shares were trading at $42.11 apiece today in mid-afternoon activity, up 1.7%.
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