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Warner Chilcott details $2 billion term loans for purchase by Actavis
By Sara Rosenberg
New York, Aug. 2 - Warner Chilcott plc has received an agreement for $2 billion of term loans for its acquisition by Actavis Inc., according to an 8-K filed with the Securities and Exchange Commission on Friday.
Bank of America Merrill Lynch, J.P. Morgan Securities LLC, The Bank of Tokyo-Mitsubishi UFJ Ltd., Mizuho Bank Ltd. and HSBC Bank USA are the joint lead arrangers on the deal that is dated as of Aug. 1. Bank of America and JPMorgan are the joint bookrunners.
The debt consists of a $1 billion three-year term loan with pricing ranging from Libor plus 100 basis points to 175 bps and a $1 billion five-year term loan with pricing ranging from Libor plus 112.5 bps to 187.5 bps, both based on debt ratings.
Proceeds will be used to repay existing credit facilities.
In addition, Actavis has entered into an agreement to amend and restate its $750 million senior unsecured revolver and $1.8 billion senior unsecured term loan due Oct. 31, 2017 to delete the springing minimum net worth financial maintenance covenant and extend the revolver maturity by one year to Sept. 16, 2017.
Pricing on Actavis' revolver can range from Libor plus 87.5 bps to 175 bps based, and pricing on its term loan can range from Libor plus 100 bps to 200 bps, both based on debt ratings.
The amendment and restatement is dated Aug. 1 and was led by administrative agent Bank of America.
Completion of the financing transactions will take place when the Warner Chilcott purchase closes.
Under the agreement, Warner Chilcott is being bought in a stock-for-stock transaction valued at about $8.5 billion.
Warner Chilcott is a specialty pharmaceutical company. Actavis is a Parsippany, N.J.-based specialty pharmaceutical company.
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