Capsugel $1.07 billion credit facility expected as July business

By Sara Rosenberg

New York, June 24 - Capsugel is anticipated to hold a bank meeting for general syndication of its proposed $1.07 billion credit facility sometime next month, according to a market source.

Early round marketing on the deal had already begun back in May.

UBS Securities LLC, Barclays Capital Inc., Deutsche Bank Securities Inc., KKR Capital Markets and Mizuho Securities USA Inc. are leading the deal, with UBS the left lead on the credit facility.

As was previously reported, the facility consists of a $150 million revolver and a $920 million term loan B.

Proceeds will be used to help fund the buyout of the company by Kohlberg Kravis Roberts & Co LP from Pfizer Inc. for $2.375 billion in cash.

Other funds for the acquisition will come from a €325 million notes offering that is backed by a commitment for a €325 million bridge loan.

Closing is expected in the third quarter, subject to customary conditions, including regulatory approval in certain jurisdictions, such as the United States and the European Union.

Capsugel is a Peapack, N.J.-based manufacturer of hard capsules and drug-delivery systems. The company generated about $750 million in revenue and manufactured more than 180 billion hard capsules in 2010.

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