King Pharmaceuticals completes $500 million revolving credit facility

By Sara Rosenberg

New York, May 14 - King Pharmaceuticals Inc. closed on its new $500 million five-year senior secured revolving credit facility (Ba1/BBB-), according to an 8-K filed with the Securities and Exchange Commission on Friday.

The facility also provides for a $500 million incremental term loan.

Credit Suisse is the administrative agent on the deal that was completed on May 11.

Pricing on the revolver can range from Libor plus 250 basis points to 300 bps based on corporate credit ratings.

Financial covenants include a minimum consolidated EBITDA to consolidated interest expense ratio for periods of four consecutive fiscal quarters of 3.50 to 1 and maintenance of a maximum total funded debt to consolidated EBITDA ratio of 3.0 to 1.

Proceeds were used to refinance the company's existing $475 million revolver.

King Pharmaceuticals is a Bristol, Tenn.-based branded pharmaceutical company.

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