Ebb & Flow

Biovitrum AB (SSE:BVT) is doing some fancy financial footwork to pull together the SEK3.5 billion ($496.7 million) it needs to pay for the acquisition of Swedish Orphan International AB, a combination the companies expect will result in a P&L with SEK5 billion in sales ($709.5 million) by 2015.

Biovitrum expanded an existing financing from Svenska Handelsbanken by adding a seven-year credit facility of up to SEK800 million ($113.5 million). It has put in place a fully committed and underwritten rights issue of about SEK1.5 billion ($212.9 million). And it will issue convertible participation certificates worth SEK1.7 billion ($241.2 million) to Swedish Orphan shareholders, which may be exchanged for convertible debt...