NBTY to pay down facility via new $1.8 billion, £300 million of loans

By Susanna Moon

Chicago, April 15 – NBTY Inc. plans to repay its senior secured credit facilities using proceeds of new loans as well as a new notes offering, according to an 8-K filing with the Securities and Exchange Commission.

The company said it plans to fund the paydown, along with the redemption of two notes series, with proceeds of a new $1.4 billion senior secured term loan facility, a £300 million senior secured term loan facility and borrowings under a new $400 million asset-based lending facility.

The paydown and redemptions also will be funded using proceeds of the company’s planned $1,075,000,000 principal amount of senior notes due 2021 in a private placement under Rule 144A and Regulation S, according to a company press release.

The offering will settle at about the same time as, and is conditioned upon, the closing of the company’s new senior secured credit facilities, the release noted.

NBTY called its $650 million principal amount of 9% senior notes due 2018 and the $1 billion of 7¾%/8½% contingent cash pay senior notes due 2017 issued by its parent, Alphabet Holding Co., Inc.

The redemption price will be 102.25% of par for the 9% notes and 101% of par for the 7¾%/8½% notes plus accrued interest to but excluding the redemption date of May 16.

NBTY is a Ronkonkoma, N.Y.-based manufacturer, marketer, distributor and retailer of vitamins and nutritional supplements.

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