Capsugel in early round marketing on $1.07 billion credit facility

By Sara Rosenberg

New York, May 16 - Capsugel is in an early round marketing stage for its $1.07 billion credit facility, with timing on the general syndication launch still to be determined, according to a market source.

UBS Securities LLC, Barclays Capital Inc., Deutsche Bank Securities Inc., KKR Capital Markets and Mizuho Securities USA Inc. are leading the deal, with UBS the left lead on the credit facility.

The facility consists of a $150 million revolver and a $920 million term loan B, the source said.

In conjunction with the early credit facility marketing, the company is also syndicating its €325 million bridge loan that is being used to back a proposed €325 million notes offering, the source added.

Proceeds from the new debt will be used to help fund the buyout of the company by Kohlberg Kravis Roberts & Co LP from Pfizer Inc. for $2.375 billion in cash.

Closing is expected in the third quarter, subject to customary conditions, including regulatory approval in certain jurisdictions, such as the United States and the European Union.

Capsugel is a Peapack, N.J.-based manufacturer of hard capsules and drug-delivery systems. The company generated about $750 million in revenue and manufactured more than 180 billion hard capsules in 2010.

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