U.S. anti-trust regulators cleared St. Jude Medical‘s (NYSE:STJ) $3.4 billion acquisition of Thoratec (NSDQ:THOR) as the HRS Act waiting period for the purchase expired on August 28, according to an SEC filing.
The passing of the waiting period is the last antitrust hurdle for Little Canada, Minn.-based St. Jude’s purchase. The company said the acquisition is still subject to approval by Pleasanton, Calif.-based Thoratec’s shareholders and other closing conditions.
The acquisition is still expected to close in the 4th quarter of this year, according to the SEC filing from Thoratec.
Last week, St. Jude said it took out a 5-year, $2.6 billion loan from Bank of America to fund its $3.4 billion purchase ofThoratec (NSDQ:THOR). According to the loan terms, $2.1 billion of the funds will go entirely towards the cost of acquiring Thoratec, with $500 million slated to be used to refinance existing debt and for general purposes.
The news came shortly after the 30-day “go-shop” period in St. Jude’s pending acquisition of Thoratec lapsed without a 2nd suitor emerging, which sent the companies’ stock prices down slightly last Friday.
The merger, medtech’s latest multi-billion union, calls for St. Jude to pay $63.50 in cash for each share of Thoratec, funded using term loans and senior unsecured debt.
Last month St. Jude raised its 2015 outlook, saying it expects to post earnings of $3.96 to $4.00, up from prior guidance of $3.92 to $3.97, and boosted the top end of its constant-currency sales growth outlook from 4% to 5% to 4% to 6%.