NBTY seeks to amend bank loan to allow $500 million issue of notes

By Angela McDaniels

Tacoma, Wash., Oct. 9 - NBTY, Inc. has launched an amendment to its credit agreement that will allow its parent company, Alphabet Holding Co., Inc., to sell contingent cash pay senior notes, according to a company news release.

The issue size of the new notes is expected to be about $500 million.

In addition, the amendment would, among other things:

• Increase the general restricted payments basket;

• Increase the maximum total leverage ratio test that governs the making of restricted payments using cumulative credit; and

• Modify the definition of cumulative credit to be calculated retroactively using 50% of the consolidated net income as defined in NBTY's indenture governing its 9% senior notes due 2018.

Barclays Bank plc is the administrative agent for the credit agreement, which was entered into on Oct. 1, 2010 and amended on March 1, 2011.

NBTY manufactures, markets, distributes and retails vitamins and nutritional supplements. The company is based in Ronkonkoma, N.Y.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.