King Pharmaceuticals downsizes term loan to $200 million

By Sara Rosenberg

New York, Dec. 16 - King Pharmaceuticals Inc. lowered the size of its four-year term loan to $200 million from $300 million, but left pricing at Libor plus 500 basis points with an original issue discount of 96, according to a market source.

Credit Suisse and Wachovia are the joint lead arrangers and bookrunners on the deal, with Credit Suisse the administrative agent.

Proceeds will be used to help fund the acquisition of Alpharma Inc. for $37 per share in cash for a total equity value of about $1.6 billion.

To replace the term loan funds, King will use more cash for the purchase.

Allocations are expected to go out this Friday, with funding and closing targeted for Dec. 29.

King is a Bristol, Tenn.-based integrated branded pharmaceutical company. Alpharma is a Bridgewater, N.J.-based specialty pharmaceutical and animal health company.

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