Actavis restates $750 million revolver on acquiring Forest Labs

By Marisa Wong

Madison, Wis., July 3 – Actavis plc amended and restated its existing $750 million senior unsecured amended and restated revolving credit loan facility dated Sept. 16, 2011, according to an 8-K filing with the Securities and Exchange Commission.

Actavis entered into the revolver amendment with Bank of America, NA and the syndicate of lenders on June 30.

The amendment is in connection with Actavis’ acquisition of Forest Laboratories, Inc. The company announced on Tuesday that it completed the merger.

The amendment, among other things, modifies the consolidated leverage ratio financial covenant to permit the consummation of the merger and conform to the maximum consolidated leverage ratio financial covenant contained in Actavis’ amended and restated unsecured term loan credit facility dated March 31, 2014.

The amendment also permits some intercompany restructuring transactions following the merger.

Interest for the amended revolver is Libor plus an applicable margin of 87.5 bps to 175 bps, depending on the company’s debt rating.

The restated revolver will now mature on Sept. 16, 2018.

Cash bridge loans

According to the filing, on June 30 Actavis also entered into a cash bridge credit and guaranty agreement with Bank of America, NA.

Under the cash bridge agreement, certain lenders committed to provide term loans in an aggregate amount of up to $2.4 billion.

The bridge loans will mature 60 days after closing.

Proceeds will be used to fund the merger.

Interest is equal to Libor plus an applicable margin of 112.5 to 187.5 bps, depending on the debt rating.

Terminated credit agreement

According to another 8-K filed Thursday, Forest Laboratories, now Forest Laboratories, LLC, terminated its credit agreement dated Dec. 4, 2012 with JPMorgan Chase Bank, NA as administrative agent.

There was no outstanding debt under the existing credit agreement prior to its termination.

Some outstanding letters of credit were transferred to Actavis’ newly amended and restated revolving credit agreement.

Actavis is a pharmaceutical company with headquarters in Dublin.

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