Chattem $400 million credit facility to launch Nov. 28

By Sara Rosenberg

New York, Nov. 21 - Chattem Inc. is scheduled to hold a bank meeting on Nov. 28 to launch its proposed $400 million credit facility, according to a market source.

Bank of America is the lead bank on the deal.

The facility consists of a $100 million revolving credit facility and a $300 million term loan talked at Libor plus 200 basis points, the source said.

Proceeds will be used to help fund the acquisition of the U.S. rights to five consumer and over-the-counter brands from Johnson & Johnson for $410 million in cash.

The brands being acquired by Chattem are ACT, an anti-cavity mouthwash/mouth rinse, Unisom, an over-the-counter sleep aid, Cortizone, a hydrocortisone anti-itch product, Kaopectate, an anti-diarrhea product, and Balmex, a diaper rash product.

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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