AmerisourceBergen eyes new $1 billion term loan to fund $2.58 billion PharMEDium acquisition

By Lisa Kerner

Charlotte, N.C., Oct. 6 – AmerisourceBergen intends to secure a $1 billion five-year term loan to finance its $2.58 billion acquisition of PharMEDium Healthcare Holdings, Inc. from Clayton, Dubilier & Rice, according to executive vice president and chief financial officer Tim Guttman.

Guttman expects the loan to be repaid within three years.

“The remaining funding will be mostly through cash on hand and the use of our credit facility,” Guttman said during a conference call on Tuesday.

AmerisourceBergen’s objective is to maintain a strong investment-grade credit rating following the transaction’s close, which is expected in the first quarter of fiscal 2016, which ends Dec. 31.

The company also expects to return its debt-to-adjusted EBITDA to target levels by September 2016, according to Guttman.

The acquisition is expected to be $0.22 to $0.26 accretive to the company’s adjusted earnings per share in fiscal 2016 on a net basis, and is expected to generate about $30 million in synergies by fiscal 2018, a news release stated.

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

PharMEDium is a Lake Forest, Ill.-based provider of hospital pharmacy-outsourced sterile compounding services.

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