Watson enters new $1.8B senior secured term loan facility

Watson Pharmaceuticals, Inc. (NYSE: WPI) today announced that it has entered into a new senior secured term loan facility in an aggregate principal amount of $1.8 billion. Borrowings under the new term loan facility bear interest, at a rate equal to LIBOR plus an expected margin of 1.50%, which is subject to a ratings based margin grid. The new five year term loan is fully prepayable.

The term loan financing will be used, in conjunction with the issuance of senior notes, to fund the previously announced proposed acquisition of Actavis, which is scheduled to close in the fourth quarter of this year. Watson plans to issue the senior notes later this year prior to the close of the acquisition.

On May 21, 2012, Watson amended its $500 million five year revolving credit facility dated September 16, 2011 to increase the borrowing capacity by $250 million. The Revolving Credit Facility provides an aggregate principal amount of $750 million in senior unsecured revolving loans. The revolving loans may be borrowed, repaid and re-borrowed for a term of five years and, subject to certain minimum amounts, may be prepaid in whole or in part without premiums or penalties. Amounts borrowed under the Revolving Credit Facility may be used to finance working capital needs and other general corporate purposes.

SOURCE Watson Pharmaceuticals, Inc.