Zoetis enters into $500 million 364-day revolving credit facility

By Sarah Lizee

Olympia, Wash., July 31 – Zoetis Inc. entered into a revolving credit agreement on Friday with Barclays Bank plc as administrative agent providing for a $500 million 364-day senior unsecured revolving credit facility, according to an 8-K filing with the Securities and Exchange Commission.

The company may convert all or a portion of outstanding revolving loans that would terminate on the maturity date into term loans with a one-year maturity.

Initially, interest will be Libor plus 112.5 basis points, and the facility fee will be 8 bps.

The company may voluntarily prepay loans and/or reduce the commitment, in whole or in part, without penalty or premium, subject to some minimum amounts and increments and the payment of customary breakage costs.

The credit agreement requires Zoetis to prepay any borrowings thereunder with the net cash proceeds of any issuance of senior unsecured notes by the company or any of its subsidiaries.

On Monday, in connection with the closing of Zoetis’ previously announced acquisition of Abaxis, Inc., the company borrowed funds under the credit agreement in order to finance a portion of the cash consideration for the acquisition, the filing said.

Bank of America, NA, Citibank, NA, JPMorgan Chase Bank, NA and MUFJ Bank, Ltd. are syndication agents.

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

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