Zoetis obtains new $1 billion five-year revolving credit facility

By Wendy Van Sickle

Columbus, Ohio, Dec. 21 – Zoetis Inc. entered into a $1 billion five-year senior unsecured revolving credit facility on Wednesday, according to an 8-K filing with the Securities and Exchange Commission.

The company may request to increase the revolver by up to an additional $500 million.

Interest is Libor plus a margin ranging from 91 basis points to 150 bps, and the commitment fee ranges from 9 bps to 25 bps, both depending upon ratings.

JPMorgan Chase Bank, NA, Barclays Bank plc, Citigroup Global Markets Inc., BofA Merrill Lynch and MUFG acted as joint lead arrangers and bookrunners; BNP Paribas, Rabobank, Goldman Sachs Bank USA, HSBC Bank USA, NA, Standard Chartered Bank, TD Bank, NA as documentation agents; Bank of America, Barclays, Citibank, NA and MUFG as syndication agents; and JPMorgan as administrative agent.

A financial covenant requires the company to not exceed a maximum total leverage ratio and to maintain a minimum interest coverage ratio.

Proceeds may be used for general corporate purposes.

The credit agreement replaces the company’s credit agreement dated Dec. 21, 2012 with JPMorgan as agent, which had been set to expire in December 2017.

Based in New York, Zoetis makes animal health medicines and vaccines.

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