Concordia Healthcare acquires Donnatal

Concordia Healthcare Corp. completed its acquisition of Donnatal, an adjunctive therapy in the treatment of irritable bowel syndrome and acute Enterocolitis, from Revive Pharmaceuticals for US$200 million in cash and an aggregate of 4,605,833 common shares of Concordia. The common shares issued have an aggregate value of approximately US$65.3 million based on the closing trading price of Concordia's common shares on the TSX on Mar. 18, 2014, and represented approximately 16.17 per cent of Concordia's outstanding common shares on a non-diluted basis (approximately 14.96 per cent on a fully-diluted basis) after giving effect to the closing of the acquisition.

Management of Concordia paid for the cash component of the acquisition through a combination of available cash and debt financing. In this respect, Concordia entered into a secured credit facility having a principal amount of up to US$195 million, consisting of a US$170 million term loan and a US$25 million operating line with GE Capital, Healthcare Financial Services and a syndicate of lenders. The credit facility is secured by the assets of Concordia and the assets of its material subsidiaries.

Concordia was represented as to US matters by Dorsey & Whitney LLP with a team led by William Jonason and that included Richard Raymer, Eric Rauch and Tom Ryan; and as to Canadian matters by Rubin Rapuch, John Sabetti and Francesco Tallarico (M&A, Securities) and Jon Holmstrom and Louise Kennedy (Banking and Finance) of Fasken Martineau DuMoulin LLP.

Revive was represented by as to US matters by Steven Goldman, James Grayer and Joshua Goldman of Kramer Levin Naftalis & Frankel LLP; and as to Canadian matters by John Ciardullo and Jeff Hershenfield (M&A, Securities) of Stikeman Elliott LLP.