Chattem to repay revolver debt with convertible proceeds

By Sara Rosenberg

New York, Nov. 13 - Chattem Inc. plans on repaying all amounts outstanding under its revolving credit facility using a portion of the proceeds from its proposed $100 million convertible senior notes offering and warrant transaction, according to a company news release.

At Nov. 10, there was about $38 million drawn under the revolver.

Remaining proceeds from the convertibles and warrants will be used to help fund the acquisition of the U.S. rights to five brands from Johnson & Johnson and the consumer health care business of Pfizer Inc.

Chattem is a Chattanooga, Tenn., marketer and manufacturer of a broad portfolio of branded over-the-counter health care products, toiletries and dietary supplements.

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