Hospira gets $1 billion five-year revolver at Libor plus 100-140 bps

By Angela McDaniels

Tacoma, Wash., Nov. 1 - Hospira, Inc. entered into a $1 billion revolving credit facility due Oct. 28, 2016, according to an 8-K filing with the Securities and Exchange Commission.

The revolver has a $300 million accordion feature and a $200 million sublimit for letters of credit.

Borrowings can be made in dollars, euros, Australian dollars, Canadian dollars, pounds sterling, Japanese yen or any other currency acceptable to all lenders.

The interest rate is Libor plus 100 basis points to 140 bps, and the facility fee is 12.5 bps to 35 bps. Both depend on the company's ratings.

Citigroup Global Markets Inc., RBS Securities Inc. and Morgan Stanley Senior Funding, Inc. are the lead bookrunners and arrangers. Citibank, NA is the administrative agent. Royal Bank of Scotland plc and Morgan Stanley Senior Funding are the syndication agents. Bank of Tokyo-Mitsubishi UFJ, Ltd. and U.S. Bank NA are the documentation agents.

The credit agreement contains a financial covenant that requires the company to keep its leverage ratio at or below 3.5 times.

The facility replaces the company's $700 million revolver, which has been terminated.

The company had no outstanding borrowings under the previous revolver at closing on Oct. 28, and it has no borrowings under the new revolver yet. Any future borrowings will be used for general corporate purposes.

Hospira is a specialty pharmaceutical and medication delivery company based in Lake Forest, Ill.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.