Company Update (NASDAQ:HZNP): Horizon Pharma PLC Announces Pricing of Private Offering of Senior Notes

Horizon Pharma PLC (NASDAQ:HZNP) announced that Horizon Pharma, Inc. and Horizon Pharma USA, Inc., its wholly owned subsidiaries, have priced their offering of $300 million aggregate principal amount of 8.750% senior notes due 2024.  The note offering is expected to close on or about October 25, 2016, subject to customary closing conditions.

Horizon currently expects to use the net proceeds from the offering of notes and $375 million of incremental term loans under Horizon’s existing senior secured credit facility to fund a portion of Horizon’s planned acquisition of Raptor Pharmaceutical Corp. (“Raptor”), repay Raptor’s outstanding debt, and pay any prepayment premiums, fees and expenses in connection with the foregoing. If the Raptor acquisition is not consummated concurrently with the consummation of the note offering, the proceeds from the offering of the notes will be held in escrow pending release in connection with the closing of the Raptor acquisition.

The notes and the incremental term loans will be fully and unconditionally guaranteed by Horizon, as well as by certain of its existing and future subsidiaries. (Original Source)

Shares of Horizon Pharma closed yesterday at $17.86, down $0.18 or -1.00%. HZNP has a 1-year high of $23.70 and a 1-year low of $12.86. The stock’s 50-day moving average is $18.57 and its 200-day moving average is $17.91.

On the ratings front, HZNP stock has been the subject of a number of recent research reports. In a report issued on October 12, Goldman Sachs analyst Stephan Stewart reiterated a Buy rating on HZNP, with a price target of $26, which represents a potential upside of 46% from where the stock is currently trading. Separately, on October 11, BMO’s Gary Nachman maintained a Buy rating on the stock and has a price target of $30.

According to, which ranks over 7,500 financial analysts and bloggers to gauge the performance of their past recommendations, Stephan Stewart and Gary Nachman have a total average return of -5.8% and 10.5% respectively. Stewart has a success rate of 50% and is ranked #2989 out of 4180 analysts, while Nachman has a success rate of 59% and is ranked #635.

Overall, 2 research analysts have assigned a Hold rating and 9 research analysts have given a Buy rating to the stock. When considering if perhaps the stock is under or overvalued, the average price target is $31.50 which is 76.4% above where the stock closed yesterday.

Horizon Pharma Plc engages in the research, development, and market of pharmaceutical products. Its medicines intend to treat arthritis, inflammation, and orphan diseases. It distributes under the following brands: Actimmune, Buphenyl, Duexis, Krystexxa, Migergot, Pennsaid, Ravicti, Rayos, and Vimovo. 

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