Viatris lines up $4 billion five-year revolving credit facility

By Wendy Van Sickle

Columbus, Ohio, July 1 – Viatris Inc. entered into an amended and restated revolving credit agreement with agent Bank of America, NA on Thursday that provides for a $4 billion revolver, which will be available after satisfaction of some conditions, according to an 8-K filing with the Securities and Exchange Commission.

The revolver will expire five years after its closing date.

There is a $300 million sublimit for letters of credit and a $175 million sublimit for swingline loans.

Borrowings may be made in dollars, yen, euros, pounds sterling or any other approved currency.

Borrowings bear interest at Libor, Euribor, Tibor or Sonia plus a margin of 120 basis points initially. The facility fee currently accrues at 17.5 bps. The margin can range from 78.5 bps to 142.5 bps and the commitment fee from 9 bps to 20 bps, depending on ratings.

The revolver will be guaranteed by Mylan Inc., Utah Acquisition Sub Inc. and Mylan II BV.

BofA Securities, Inc., Barclays Bank plc, BNP Paribas Securities Corp., Citibank, NA, Deutsche Bank Securities Inc., DNB Markets, Inc., Goldman Sachs Bank USA, ING Bank NV, Dublin Branch, JPMorgan Chase Bank, NA, Mizuho Bank, Ltd., Morgan Stanley MUFG Loan Partners, LLC, PNC Capital Markets LLC and RBC Capital Markets, LLC acted as lead arrangers and bookrunners.

The credit agreement contains a financial covenant requiring maintenance of a leverage ratio no greater than 4.25 to 1.00 as of the last day of each fiscal quarter ending through and including the fiscal quarter ending June 30, 2022; 4.00 to 1.00 as of the last day of each fiscal quarter ending after June 30, 2022 through and including the fiscal quarter ending Dec. 31, 2022; and 3.75 to 1.00 as of the last day of any fiscal quarter thereafter.

The pharmaceutical company is based in Canonsburg, Pa.

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