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Actavis Successfully Completes Syndication Of $1.3 Billion Acquisition Facility


09.01.2006, Actavis Group, the international generic pharmaceutical company has successfully completed the syndication of a $1.3 billion acquisition facility. The sole underwriter and book-runner is UBS Limited.

The proceeds have been used to fund Actavis’ $810 million acquisition of Alpharma Inc.’s human generics division in October 2005 and to refinance Actavis’ June 2005 syndicated credit facility.
The facility is split into a US$970 million 5-year Term Loan and a US$300 million 5-year Revolving Credit Facility. The proceeds of the facility together with a concurrent preference share offering in Iceland with net proceeds of US$425 MILLION underwritten by Islandsbanki hf. and Landsbanki Islands hf., funded the acquisition of Alpharma’s human generics business for a total consideration of US$810 million as well as refinanced Actavis’ June 2005 syndicated credit facility.

The syndication was successfully oversubscribed with ABN Amro, Bank of America, BNP Paribas, HSBC and WestLB joining as Mandated Lead Arrangers, 7 banks as Arrangers and 13 banks joining on a Co-Arranger level.

The acquisition of Alpharma which closed on December 19 has made Actavis one of the five largest companies in generic pharmaceuticals worldwide in terms of revenue.

Previously, Actavis had acquired New Jersey -based Amide Pharmaceuticals in May 2005, giving the company a strong presence in the US. Following the acquisition of Alpharma’s human generic business, over one third of 2006 Group revenues are expected to be generated in the key US market. In addition, Actavis has gained a local presence for its own-label products in the largest European generic pharmaceutical markets, Germany and the UK, as well as enhancing its position in Scandinavia, the Netherlands, Portugal and other European countries.

The enlarged Group has over 200 products in its development pipeline and in registration and is expected to file more than 30 Abbreviated New Drug Applications (“ANDAs”) in 2006, positioning the Group among the leading companies in the US in terms of pending ANDAs. Actavis has acquired additional US Food and Drug Administration (“FDA”) approved production capacity in the US in addition to European-approved (EU-GMP) plants in the UK, Norway and Indonesia. The enlarged Group’s total manufacturing capacity IS over 24 billion tablets and capsules. The EBITDA margin for the enlarged Group is expected to be around 19-20% for 2006, with total revenues exceeding EUR1.3 billion.


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