Mylan to redeem in full its 7.625% senior notes due 2017 on July 18

By Marisa Wong

Madison, Wis., June 18 - Mylan Inc. plans to redeem all of its outstanding 7.625% senior notes due 2017 on July 18, according to an 8-K filing with the Securities and Exchange Commission.

The notes will be redeemed at par plus the excess of (a) the present value at the redemption date of (i) 103.813% of par plus (ii) all scheduled interest payments due through July 15, 2014, discounted at a rate of Treasuries plus 50 bps; over (b) the principal amount as of the redemption date, plus accrued and unpaid interest to the redemption date.

Mylan anticipates that it will take a pre-tax charge of roughly $65 million upon redeeming the notes, which it expects to be partially offset by reduced interest expense through the notes' first call date, the filing noted.

The company also said it is refinancing its revolving credit facility to increase the size to $1.5 billion from $1.25 billion and remove security and guarantee provisions.

These announcements were made on Tuesday, when the company priced a private placement of $500 million 1.8% senior notes due 2016 and $650 million 2.6% senior notes due 2018. Proceeds from the new notes will be used to repay term loans, according to a press release.

Mylan is a Pittsburgh-based pharmaceutical company.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.