aibioBioMarin prices $850 million of 5.5% notes to help fund its $4.8 billion Amicus purchase
Tickers BMRN
The senior notes due 2034 priced at par and will sit in escrow until the deal closes. BioMarin also completed syndication of a $2 billion term loan B.
Key facts
- Company
- BioMarin Pharmaceutical Inc. (NASDAQ: BMRN)
- News type
- Financings
- Primary source
- BioMarin Pharmaceutical
BioMarin Pharmaceutical priced $850 million of 5.500% senior notes due 2034 on Jan. 29, 2026, at an issue price of 100.000%. The offering was one piece of the financing for its pending purchase of Amicus Therapeutics.
What happened
The company said the notes were expected to close on Feb. 12, subject to customary conditions. It also said it had completed syndication of a new $2 billion senior secured term loan B. Separately, it expected to enter an $800 million term loan A and a $600 million senior secured revolving credit facility.
BioMarin said the notes, the term loan borrowings and cash on hand will pay the consideration and fees for the Amicus acquisition. It may also borrow up to $150 million under the revolver to cover fees and expenses.
Deal terms
Gross proceeds from the notes go into escrow until the acquisition closes. If the deal has not been completed by Dec. 19, 2026, or if certain other events occur, BioMarin must redeem the notes at 100% of the issue price plus accrued interest, according to the company's announcement.
The acquisition itself was announced on Dec. 19, 2025: BioMarin agreed to pay $14.50 per Amicus share in cash, for a total equity value of about $4.8 billion. That price was a 33% premium to Amicus' last close. The deal needed approval from Amicus stockholders and antitrust clearances, and the companies expected it to close in the second quarter of 2026.
Why it matters
Amicus brings Galafold for Fabry disease and Pombiliti plus Opfolda for Pompe disease. BioMarin said the two products had generated $599 million in revenue over the prior four quarters. The Dec. 19 release also said Amicus had settled its U.S. Galafold patent litigation, with generic entry licensed from Jan. 30, 2037.
At announcement, BioMarin said it intended to finance the deal with cash and about $3.7 billion of non-convertible debt, backed by a bridge commitment from Morgan Stanley Senior Funding. The January package is the permanent version of that plan: $850 million of notes plus a $2 billion term loan B and an $800 million term loan A, which together come to $3.65 billion, close to the $3.7 billion the company named in December. That sum is arithmetic on the announced figures, not a number the company gave.
BioMarin also said at announcement that the permanent structure would include a meaningful share of prepayable debt, and that it aimed to bring gross leverage below 2.5 times within two years after closing.
What it means for investors
The notes carry a 5.5% coupon, a rate that applies to $850 million, or about $46.8 million a year in interest on the notes alone by simple multiplication. Add the term loans and revolver, and interest costs will weigh on earnings, which the company has said it expects the deal to offset: it expected the purchase to be accretive to non-GAAP EPS within 12 months of closing and substantially accretive starting in 2027.
The escrow structure protects noteholders more than shareholders. If regulators or Amicus holders block the deal, BioMarin redeems the notes at par, so the main cost of failure would be fees. For equity holders the uncertainty is the usual one for a large all-cash purchase: integration, the Galafold and Pombiliti growth rates BioMarin has promised, and whether it pays down debt on schedule.
What to watch
The notes were expected to close Feb. 12, 2026. The deal itself was expected to close in the second quarter of 2026, with a Dec. 19, 2026 outside date implied by the notes' redemption trigger.