Generic Drug launches $380 million term B at Libor plus 425-450 bps

By Sara Rosenberg

New York, July 31 - Generic Drug Holdings Inc. (Harvard Drug) launched on Wednesday its $380 million senior secured term loan B with price talk of Libor plus 425 basis points to 450 bps with a 1% Libor floor and an original issue discount of 99, according to a market source.

The term loan has 101 soft call protection for one year, the source said.

Covenants include a maximum total leverage ratio.

Commitments are due on Aug. 14, the source added.

Morgan Stanley Senior Funding Inc., Credit Suisse Securities (USA) LLC and Deutsche Bank Securities Inc. are the lead banks on the deal.

Proceeds will be used to refinance existing debt and pay a dividend to shareholders.

Generic Drug is a Livonia, Mich.-based independent pharmaceutical distributor.

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