Jazz Pharmaceuticals, Inc. Announces Expansion of S...( PALO ALTO Calif. March 18 /- Jazz...)

PALO ALTO, Calif., March 18 /PRNewswire-FirstCall/ -- Jazz Pharmaceuticals, Inc. (Nasdaq: JAZZ) announced today that it has expanded its senior debt under an agreement with an affiliate of Lehman Brothers and certain of the other holders of Jazz Pharmaceuticals' existing senior debt. The transaction closed with $40 million of gross proceeds, expanding the senior debt outstanding from $80 million to $120 million. The notes issued under the note and warrant purchase agreement bear interest at 15 percent per annum, payable quarterly in arrears, and are due in June 2011. In connection with this expansion, Jazz Pharmaceuticals issued to the note purchasers five-year warrants to purchase an aggregate of 562,192 shares of its common stock at an exercise price of $14.23 per share.

Jazz Pharmaceuticals has an option under the agreement, through January 31, 2009, to borrow an additional $30 million, with the issuance of additional warrants, if sales of the company's products reach certain levels by the end of 2008 and subject to customary closing conditions.

"We are pleased to have closed this significant expansion of our senior debt with Jazz Pharmaceuticals' senior lenders very quickly after the FDA's approval of LUVOX CR, together with obtaining an option for additional expansion following sales growth of our products," said Matthew K. Fust, Chief Financial Officer.

Jazz Pharmaceuticals plans to use the proceeds of the debt expansion to pay milestones due under its license agreement with Solvay Pharmaceuticals, Inc. for LUVOX(R) CR (fluvoxamine maleate) Extended-Release Capsules, to support LUVOX CR launch expenses, and for general corporate purposes.

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