Davis Polk Advises Pernix Therapeutics Holdings, Inc. on Its Refinancing Transactions

Davis Polk advised Pernix Therapeutics Holdings, Inc. in connection with a series of refinancing transactions that are intended to improve liquidity, extend debt maturities and enable Pernix to create value for stakeholders. The transactions include a new $40 million asset-based revolving credit facility to refinance Pernix’s existing credit facility that was scheduled to mature on July 31, 2017, a $45 million delayed draw term loan, including immediate access to $30 million and an additional $15 million available for certain acquisition purposes, and an exchange of approximately $52 million of existing 4.25% convertible senior notes for approximately $36 million of new exchangeable notes and approximately 1.1 million shares of Pernix’s common stock.

Pernix is a specialty pharmaceutical business with a focus on acquiring, developing and commercializing prescription drugs primarily for the U.S. market.

The Davis Polk capital markets team included partner Sophia Hudson and associates Judah Bareli, Joseph S. Payne and Jennifer (Yujia) Jiang. The credit team included partner Jinsoo H. Kim and associates Andrei Takhteyev and Hubert Ahn. The insolvency and restructuring team included partners Marshall S. Huebner and Eli J. Vonnegut and associate Christopher Robertson. All members of the Davis Polk team are based in the New York office.