Watson Pharmaceuticals sets Wednesday launch for $1.15 billion credit facility

By Sara Rosenberg

New York, July 17 - Watson Pharmaceuticals Inc. has scheduled a bank meeting for Wednesday to launch its proposed $1.15 billion credit facility, according to a market source.

CIBC and Wachovia are the lead banks on the deal, with CIBC the left lead. Sumitomo, Union Bank of California and Wells Fargo are documentation agents.

The facility consists of a $500 million five-year revolver and a $650 million five-year term loan, with both tranches expected at Libor plus 75 basis points, according to previous filings with the Securities and Exchange Commission.

Proceeds will be used to help fund Watson's acquisition of Andrx Corp. in an all-cash transaction for $25.00 per share, or $1.9 billion.

Watson is a Corona, Calif., generic pharmaceutical company. Andrx is a Davie, Fla., generic pharmaceutical company.

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