Barr Pharmaceuticals amends credit facilities ahead of merger with Teva

By Lisa Kerner

Charlotte, N.C., Oct. 27 - Barr Pharmaceuticals, Inc. and its syndicate of lending banks, arranged by Bank of America, agreed to amend Barr's unsecured credit facilities, permitting them to remain in place following the company's acquisition by Teva Pharmaceutical Industries Ltd.

The amendments waive lenders' right to call Barr's debt upon the change of control in connection with the acquisition, which Teva expects to close by late 2008.

The facilities have outstanding balances of approximately $1.65 billion and $292 million that mature in October 2011 and June 2013, respectively.

Barr also has an additional revolving credit facility of $300 million that is unutilized.

"The combination of the amended Barr credit facilities, Teva's available cash on hand and our committed bridge financing will provide us with sufficient funds to complete the acquisition of Barr as well as support the continued growth of our business," Teva chief financial officer Eyal Desheh said in a company news release.

In July, Teva agreed to acquire Barr for $7.46 billion including the assumption of $1.5 billion in net debt.

Each Barr common share will be converted into $39.90 in cash and 0.6272 Teva American Depositary Receipts, it was reported previously.

Teva develops, manufactures and markets generic and human pharmaceuticals as well as active pharmaceutical ingredients. The company is based in Petach Tikva, Israel.

Barr is a Montvale, N.J.-based developer, manufacturer and marketer of generic and proprietary pharmaceuticals.

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