AmerisourceBergen gets new $700 million unsecured revolver

By Sara Rosenberg

New York, Dec. 2 - AmerisourceBergen Corp. closed on a new $700 million five-year senior unsecured revolving credit facility on Thursday due Dec. 2, 2009, according to an 8-K filed with the Securities and Exchange Commission.

J.P. Morgan Securities Inc. and Banc of America Securities LLC acted as co-lead arrangers and joint bookrunners, JPMorgan Chase as administrative agent, Bank of America as syndication agent, and The Bank of Nova Scotia, Wachovia Bank and Wells Fargo Bank as documentation agents.

Borrowings carry an interest rate that can range from Libor plus 32 to 120 basis points.

The revolver replaces the company's previous $1 billion senior secured revolver due August 2006 and $180 million senior secured term loan due August 2006.

Borrowings will be available for general corporate purposes.

The company has also amended its $1.05 billion securitization program to improve terms and conditions. Basically, the three-year revolver was increased to $700 million from $550 million and extended to December 2007 and the 364-day revolver was decreased to $350 million from $500 million and extended to December 2005.

And, the company plans to redeem its $300 million 5% convertible subordinated notes due 2007.

"Our strong operating cash flow resulting from solid operating performance and the evolution to a new business model has enabled us to considerably improve our capital structure," said Michael D. DiCandilo, senior vice president and chief financial officer, in a news release. "The result will be significantly reduced interest expense and greater financial flexibility in the future."

AmerisourceBergen is a Valley Forge, Pa.-based pharmaceutical services company.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.