Grifols closes rare high yield escrow structure

Author: Danielle Myles | Published: 27 Feb 2011

Grifols has provided a rare example of high yield closing into escrow and investors offered a redemption function. It shows how large scale mergers of equals can secure good financing terms in the market’s short windows.

The Spanish pharmaceuticals group’s $1.1 billion offering was through an escrow issuer with the Bank of New York Mellon. The funds are for Grifols’ merger with Talecris Biotherapeutics and will remain in escrow until that deal closes.

In early negotiations, lawyers often discuss the possibility of closing into escrow. But the mechanics of issuing through a shell...