Actavis enters into up to $4.7 billion cash bridge credit agreement

By Tali Rackner

Norfolk, Va., March 13 – Actavis plc entered into an up to $4,698,000,000 60-day senior unsecured cash bridge credit agreement on Wednesday via agent JPMorgan Chase Bank, NA, according to an 8-K filing with the Securities and Exchange Commission.

Interest is Libor plus a margin of 100 basis points to 200 bps, based on the company’s debt ratings.

There is also a 17.5 bps nonrefundable ticking fee from Jan. 15 until the earlier of the termination of the commitments and the funding date thereunder.

Proceeds will be used to finance, in part, the cash component of the consideration for the acquisition of Allergan, Inc. and related fees and expenses.

Commitments under the agreement will terminate on the earliest of (a) 5 p.m. ET on Sept. 30, 2015, subject to extension in certain circumstances to Nov. 16, 2015; (b) the closing of the merger without the use of the agreement; (c) the termination of the merger agreement; and (d) 11:59 p.m. ET on the date the bridge credit agreement or the term loan credit agreement are funded, respectively.

J.P. Morgan Securities LLC, Mizuho Bank Ltd. and Wells Fargo Securities LLC are the joint lead arrangers and bookrunners. Mizuho Bank and Wells Fargo Bank, NA are co-syndication agents.

Actavis is a pharmaceutical company with headquarters in Dublin. Irvine, Calif.-based Allergan is a multi-specialty health-care company.

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