Warner Chilcott seeks amendment to revise pricing and Libor floor

By Sara Rosenberg

New York, Jan. 20 - Warner Chilcott plc is looking to amend its credit facility to reduce pricing on the term loan B debt and lower the Libor floor on the term loan A and term loan B borrowings, according to a market source.

Specifically, pricing on the term loan B-1 and B-2, and additional term loans, would be reduced by 25 basis points to Libor plus 325 bps.

And, the Libor floor under the term loan A, term loan B-1, term loan B-2 and additional term loans would be lowered to 1.75% from 2.25%, the source said.

There would be no changes made to the revolving credit facility.

Majority consent is required for the amendment to pass, and lenders are being given a two-day turnaround on signatures, the source continued.

Loans of existing term loan lenders that do not consent to the amendment will be refinanced at par plus accrued interest with the proceeds of new money replacement term loans.

Lenders are not being offered an amendment fee.

Credit Suisse is the administrative agent on the deal, but Bank of America is the left lead on the deal.

Warner Chilcott is a Rockaway, N.J.-based specialty pharmaceutical company.

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