Watson Pharmaceuticals to get $1.15 billion in bank debt for Andrx purchase

By Sara Rosenberg

New York, March 13 - Watson Pharmaceuticals Inc. plans to obtain $1.15 billion of new bank debt to help fund its acquisition of Andrx Corp., company officials said in a conference call Monday.

CIBC World Markets has provided the loan financing commitment.

The new bank debt is expected to be funded at a cost of Libor plus 75 basis points, officials added in the call.

Under the acquisition agreement, Watson will buy Andrx in an all-cash transaction for $25.00 per share, or $1.9 billion.

The transaction is expected to close within six months, but is subject to the satisfaction of customary closing conditions, including receipt of applicable governmental approvals and Andrx stockholder approval.

Watson is a Corona, Calif., generic pharmaceutical company. Andrx is a Davie, Fla., generic pharmaceutical company.

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