Biogen Aims to Replace $1.5 Billion M&A Bridge With Term Loans

Biogen Inc. plans to replace the $1.5 billion debt financing it secured for its purchase of Reata Pharmaceuticals Inc. with two term loans, according to a spokesperson for the company.

The biotech firm inked a bridge loan for up to $1.5 billion with JPMorgan Chase & Co., according to a filing, showcasing that banks are still open to lending for mergers and acquisitions. Biogen expects to fund the rest of the consideration with a combination of cash on hand and term loan proceeds, according to the filing.

“The rationale for the use of bank loans instead of issuing bonds ...