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aaiPharma prices $175 million senior secured credit facilities via Banc of America
By Sara Rosenberg
New York, March 12 - aaiPharma, Inc.'s proposed $175 million senior secured credit facility is anticipated to close by June 2002, according to a source at the company. Banc of America Securities is the lead arranger on the deal.
The loan will consist of a $75 million five-year revolving credit facility and a $100 million five-year term loan, according to a filing with the Securities and Exchange Commission. According to Banc of America Securities, the revolver is priced at 375 basis points over Libor and the term loan is priced at 425 basis points over Libor.
The term loan is scheduled to amortize over a period of five years with amortization of $5 million in the first year, $15 million in the second year, $20 million in the third year, $25 million in the fourth year and $35 million in the fifth year.
The revolver is not tied to a borrowing base and has a commitment fee based on the unused part.
The corporation will have the option of prepaying the senior secured credit facilities without a premium.
aaiPharma is backing the loan with a security interest on largely all its domestic assets, all the stock of its domestic subsidiaries and 65% of the stock of its material foreign subsidiaries. The facility includes covenants for financial ratios and indebtedness.
Proceeds will be used to help fund the purchase of Darvon and Darvocet, two pain relief products from Eli Lilly. aaiPharma is also expected to price $175 million senior subordinated notes due 2010 on March 27 via Banc of America Securities to fund the remaining portion of the acquisition of the Eli Lilly pharmaceuticals.
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