APP Pharmaceuticals launches pro rata at Libor plus 225 bps, institutional at Libor plus 250 bps

By Sara Rosenberg

New York, Nov. 9 - APP Pharmaceuticals Inc. (Abraxis Pharmaceuticals) launched its $150 million revolver and $500 million term loan A with price talk of Libor plus 225 basis points, and its $500 million term loan B with price talk of Libor plus 250 bps, according to a market source.

The term loan B is being offered to investors with an original issue discount that is in the 99 area, the source added.

Deutsche Bank and Wachovia are the lead banks on the deal that launched with a bank meeting on Friday at 9:30 a.m. ET, with Deutsche the left lead.

Proceeds from the $1.15 billion credit facility (Ba3/BB+) will be used to help fund the company's spin off from Abraxis BioScience, Inc.

Pro Forma, for the last 12 months ended Sept. 30, the company is estimated to generate revenue of $652 million and adjusted EBITDA of $263 million.

Total leverage is 3.8 times based on LTM adjusted EBITDA.

Abraxis Pharmaceuticals is a manufacturer and marketer of oncology, anti-infective and critical care hospital-based generic injectable products and proprietary anesthetic/analgesic products.

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