Generics sets Monday conference call for retail launch of $507 million credit facility

By Sara Rosenberg

New York, Oct. 30 - Generics International Inc. firmed up timing on the retail launch of its $507 million credit facility with the scheduling of a conference call for Monday, according to a market source.

Previously, it was known that the launch would take place next week, but a specific date had been unavailable.

RBC Capital is the lead arranger and bookrunner on the deal, with General Electric Capital Corp. committing a lead order as first-lien co-arranger and syndication agent.

The facility consists of a $75 million revolver (B1/B+) talked at Libor plus 350 basis points, a $265 million funded first-lien term loan B (B1/B+) talked at Libor plus 350 bps, a $27 million delayed-draw term loan (B1/B+) talked at Libor plus 350 bps and a $140 million second-lien term loan (Caa1/CCC+) talked at Libor plus 750 bps.

The first- and second-lien term loans are expected to carry an original issue discount in the 99 to 99½ range.

The deal was already launched to select investors on Oct. 9, and so far, the pro rata debt and the second-lien loan are subscribed and the term loan B has received orders as well.

Proceeds will be used to help fund Apax Partners' acquisition of Qualitest and Vintage Pharmaceuticals, a Huntsville, Ala.-based distributor and manufacturer of generic pharmaceuticals.

The acquisition is expected to close on Oct. 31.

Pro forma leverage is roughly 3.5 times through the first-lien debt and 5.5 times through the second-lien debt.

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