Mylan begins tender offers, consent solicitations for 5¾%, 6 3/8% notes

By Angela McDaniels

Seattle, Aug. 31 - Mylan Laboratories Inc. began tender offers for its outstanding 5¾% senior notes due 2010 and 6 3/8% senior notes due 2015, according to a company news release.

The company is also soliciting consents to eliminate substantially all of the restrictive covenants and some events of default in the note indentures. Noteholders who tender must deliver consents and vice versa.

The tender offers will expire at midnight ET on Sept. 28. The consent deadline for both offers is 5 p.m. ET on Sept. 14.

The payout will be determined on Sept. 14 based on the bid-side yield to maturity of the 4 1/8% U.S. Treasury note due Aug. 15, 2010 plus 50 basis points. The payout will include a $30 consent fee for each $1,000 principal amount of notes tendered by the consent deadline.

Mylan also will pay accrued interest up to but excluding the settlement date.

The company said the offers are being made as part of a broader strategy to establish its new capital structure and in preparation for the consummation of its proposed acquisition of Merck KGaA's generic pharmaceutical business.

The offer for each series of notes is conditioned upon the receipt of consents from holders of at least a majority of those notes, consummation of the merger transaction and satisfaction of certain general conditions.

Merrill Lynch, Pierce, Fenner & Smith Inc. (212 449-4914 or 888 654-8637) and Citigroup Global Markets Inc., (212 723-6106 or 800 558-3745) are the dealer managers and solicitation agents, and Global Bondholder Services Corp. (866 804-2200) is the information agent.

Mylan is a pharmaceutical company based in Canonsburg, Pa.

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