Actavis gets commitments for $2 billion tranche A-2 term loans

By Marisa Wong

Madison, Wis., April 3 - Actavis plc amended and restated its existing senior unsecured term loan credit facility dated Oct. 1, 2013 with Bank of America, NA as administrative agent for additional term loans of up to $2 billion, according to an 8-K filing with the Securities and Exchange Commission.

The second amended and restated term loan agreement became effective on March 31.

The tranche A-2 term loans will mature five years after the closing date of Actavis' planned acquisition of Forest Laboratories, Inc. Loan proceeds will be used to fund the transaction.

The tranche A-2 term loans will bear interest at Libor plus an applicable margin of 112.5 basis points to 187.5 bps, depending on the company's debt rating.

The outstanding principal amount of tranche A-2 term loans is payable at 2.5% per quarter prior to the fifth anniversary of the closing date, with the remaining balance payable at maturity.

The restated loan agreement also contains amendments to financial reporting covenants and other affirmative and negative covenants, quarterly total leverage maintenance covenant and events of default, the filing noted.

Funding of the tranche A-2 term loans is subject to various closing conditions related to the acquisition.

Actavis is a pharmaceutical company with headquarters in Dublin.

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