Mylan to launch roughly $4.85 billion facility in New York on Nov. 27

By Sara Rosenberg

New York, Nov. 15 - Mylan Inc. has scheduled a bank meeting for Nov. 27 in New York to launch its proposed $4.85 billion senior credit facility (BB), according to a market source.

A bank meeting for European investors will take place on Monday in London.

Merrill Lynch and Citigroup are the joint bookrunners and joint lead arrangers on the deal, with Merrill the left lead, and JPMorgan is the administrative agent.

The facility, which already funded in early October, consists of a $750 million six-year revolver, a $500 million six-year term loan A and a $3.6 billion seven-year term loan B, the source said.

Pricing on the revolver is Libor plus 275 basis points, with a 50 bps commitment fee, and pricing on the term loan A and term loan B is Libor/Euribor plus 325 bps, according to filings with the Securities and Exchange Commission.

At the close, the term loan B was divided into a $2 billion U.S. tranche and a €1.13 billion euro tranche.

There are minimum consolidated interest coverage and maximum consolidated senior leverage covenants.

Proceeds were used to help fund the acquisition of Merck KGaA's generics business, to refinance Mylan's existing credit facility and to purchase the company's 5¾% senior notes due 2010 and 6 3/8% senior notes due 2015 under a tender offer.

Mylan is a Canonsburg, Pa., pharmaceutical company.

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