Sun Pharmaceutical Industries is evaluating a range of financing structures for its proposed $12 billion acquisition of Organon & Co., according to people familiar with the matter cited by Bloomberg. The discussion involves global lenders who are reportedly weighing different ways to fund the transaction, rather than relying on a single source of capital.
Business Standard adds that Sun Pharma is also considering steps that would involve Organon bondholders. Specifically, it reports that the company is looking at the possibility of seeking consent from Organon bondholders to exchange their holdings into Sun Pharma debt. This would effectively shift the credit exposure of the existing bondholders from Organon to Sun Pharma, subject to agreement and applicable terms.
Both reports center on the same deal size and the need to secure financing for it, while differing in emphasis: one focuses on lender-led options for funding, and the other highlights a potential approach involving bondholder consent and an exchange into Sun Pharma instruments. No final financing plan is described in the available accounts.
