Warner Chilcott revises discount price on $300 million term B-1 to 99¼

By Sara Rosenberg

New York, Aug. 15 - Warner Chilcott plc tightened the original issue discount on its $300 million term loan B-1 due March 2018 to 99¼ from 99, according to a market source.

Pricing on the term loan B-1 is Libor plus 325 basis points with a 1% Libor floor.

Pricing on the $300 million term loan B-4/5 due August 2017 is Libor plus 300 basis points, the tight end of the Libor plus 300 bps to 325 bps guidance. The discount on this loan is firmed at 991/2, versus initial talk of 99 to 991/2, the source said. There is no Libor floor.

Both loans still have 101 soft call protection for one year.

Amortization on the term loan B-4/5 is 10% in year one, 20% in years two to four and 30% in year five.

Recommitments were due on Wednesday, the source said.

Bank of America Merrill Lynch and Goldman Sachs & Co. are the lead banks on the $600 million of new senior secured term loans (Ba3/BBB-).

Proceeds will be used with cash on hand to fund a special dividend to ordinary shareholders of $4 per share, or about $1 billion in total.

Closing is expected before the end of this quarter.

Leverage will be around 2.75 times, compared to leverage of around 2.3 times at the end of June.

Warner Chilcott is a Dublin-based specialty pharmaceutical company.

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