King Pharmaceuticals delays $1 billion credit facility launch till Thursday

By Sara Rosenberg

New York, Nov. 17 - King Pharmaceuticals Inc. has moved the bank meeting for its proposed $1 billion senior secured credit facility (Ba2/BBB-) to Thursday from Tuesday, according to a market source.

Credit Suisse and Wachovia are the joint lead arrangers and bookrunners on the deal, with Credit Suisse the administrative agent.

The facility consists of a $150 million revolver talked at Libor plus 500 basis points, a $350 million term loan A talked at Libor plus 500 bps and a $500 million term loan B talked at Libor plus 550 bps.

The revolver and the term loan A will be offered at an original issue discount of 96, and the term loan B will be offered at an original issue discount of 95.

All tranches have a 3% Libor floor.

Proceeds will be used to help fund the company's hostile takeover attempt of Alpharma Inc. through a tender offer of $37 per share for all of Alpharma's outstanding shares of class A common stock. The $1.6 billion offer was taken directly to Alpharma shareholders.

The tender offer expires on Nov. 21, after being extended from an original Oct. 10 deadline. As of Oct. 10, about 18.8 million shares, or 45%, of the class A common stock of Alpharma were tendered.

King Pharmaceuticals is a Bristol, Tenn.-based integrated branded pharmaceutical company. Alpharma is a Bridgewater, N.J.-based specialty pharmaceutical and animal health company.

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