AmerisourceBergen accepts $497.7 million 8 1/8% notes, $299.3 million 7¼% notes in tender offer

By Jennifer Chiou

New York, Sept. 14 - AmerisourceBergen Corp. announced it accepted $497.7 million or 99.5% of its $500 million of 8 1/8% senior notes due 2008 and $299.3 million or 99.8% of its $300 million of 7¼% senior notes due 2012 in its tender offers.

The company paid $1,103.04 for each $1,000 principal amount of 8 1/8% notes plus accrued interest and $1,166.37 for each $1,000 principal amount of 7¼% notes plus accrued interest.

Both payments include the consent payment of $30.00 per $1,000 principal amount of notes for those who tendered their holdings before the consent deadline at 5 p.m. ET on Sept. 8.

As of 5 p.m. ET on Sept. 8, more than 99.5% of the total principal amount of notes were tendered, resulting in the required consents to amend the notes' indentures, eliminating restrictive covenants.

The offer expires at 5 p.m. ET on Sept. 23.

The company also announced it sold $400 million of 5 5/8% senior notes due 2012 and $500 million of 5 7/8% senior notes due 2015 and it will use the proceeds for its tender offer.

For the 8 1/8% notes, AmerisourceBergen based pricing on the notes' redemption price on their first call date, discounted using the bid-side yield on the 4 1/8% Treasury due Aug. 15, 2008 plus 50 basis points. The bid-side yield of the 4 1/8% Treasury at 2 p.m. ET on Sept. 9 was 3.879%, which results in a reference yield of 4.379%.

For the 7¼% notes, the company based pricing on the redemption price of the notes on their first call date, discounted using the bid-side yield on the 4% Treasury due Nov. 15, 2012 plus 50 bps. The bid-side yield of the 4% Treasury at 2 p.m. ET on Sept. 9 was 4.007%, resulting in a 4.307% reference yield.

Lehman Brothers Inc. (800 438-3242 or call collect 212 528-7581) is the dealer manager and solicitation agent, and D.F. King & Co., Inc. is the information agent (800 859-8508 or call collect 212 269-5550).

Based in Valley Forge, Pa., AmerisourceBergen is a 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.