AmerisourceBergen ups revolver to $2.4 billion, ends $1 billion loan

By Wendy Van Sickle

Columbus, Ohio, Nov. 8 – AmerisourceBergen Corp. and its subsidiaries BP Pharmaceuticals Laboratories Unlimited Co., Centaur Services Ltd. and Innomar Strategies Inc. amended and restated their multicurrency revolving credit facility on Nov. 4, increasing its size to $2.4 billion from $1.4 billion and extending the maturity date to Nov. 4, 2026, according to an 8-K filing with the Securities and Exchange Commission.

The maximum permitted financial leverage ratio was increased to 3.75x from 3.5x, the limit on intercompany debt owed by domestic subsidiaries to foreign subsidiaries was eliminated, and changes were made to the provisions for the transition to a new interest rate benchmark replacing Libor.

Revolver borrowings bear interest at Libor, Euribor, CDOR or Sonia plus an applicable rate based on the company’s debt ratings. The applicable rate ranges from 80.5 basis points to 122.5 bps. The commitment fee ranges from 7 bps to 15 bps and is also based on ratings.

There is a $75 million sublimit for letters of credit.

J.P. Morgan Securities LLC, BofA Securities, Inc. and Wells Fargo Securities LLC are the lead arrangers and joint bookrunners with JPMorgan Chase Bank, NA as administrative agent, Bank of America, NA and Wells Fargo Bank NA as syndication agents and Citibank, NA, Morgan Stanley Senior Funding, Inc., MUFG Bank Ltd., Bank of Nova Scotia and U.S. Bank NA as documentation agents.

The revolving credit agreement is originally dated March 18, 2011.

Proceeds of the revolver may be used for general corporate purposes.

The company also amended its term credit agreement to conform with the changes to the financial leverage ratio and the limit on intercompany debt of the revolver.

Finally, the company terminated its $1 billion 364-day revolver that was scheduled to expire on May 31, 2022.

Based in Chesterbrook, Pa., AmerisourceBergen provides drug distribution and related services to pharmaceutical manufacturers in the United States and Canada.

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