Mylan extends tender offers for 5¾%, 6 3/8% notes

By Angela McDaniels

Seattle, Sept. 28 - Mylan Laboratories Inc. said it extended the tender offers for its outstanding 5¾% senior notes due 2010 and 6 3/8% senior notes due 2015 to 10 a.m. ET on Oct. 2.

The offers began on Aug. 31 and were slated to expire at midnight ET on Sept. 28.

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 consent deadline for both offers was 5 p.m. ET on Sept. 14.

The company will pay $1,030.52 for each $1,000 principal amount of 5¾% notes and $1,075.13 for each $1,000 principal amount of 6 3/8% notes. Each total payout includes a consent fee of $30 for notes tendered by the consent deadline.

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

The payouts were 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.

As of Sept. 27, the company had received tenders and consents for $147.5 million, or 98.31%, of the 5¾% notes and $349.8 million, or 99.94%, of the 6 3/8% notes.

Mylan 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.

The tender offers were extended because the merger is now expected to close on Tuesday.

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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