Watson Pharma Prices $850M In HY
August 19, 2009
Watson Pharmaceuticals was the sole company to price a high yield bond deal Tuesday, as the high yield market has slowed for August.
The Morristown, N.J.-based pharmaceutical provider issued $850 million in two tranches: $450 million in 5% senior notes due 2014 and $400 million in 6.125% senior notes due 2019. The bonds were rated Ba1 by Moody’s Investors Service and BBB- by Standard & Poor’s and Fitch Ratings.
The company will use a portion of the proceeds to help finance its acquisition of Arrow Group. Watson will also use the funds to redeem its $575 million in senior debentures due 2023 and repay $100 million in term loan debt.
Bank of America Merrill Lynch and Barclays were lead bookrunners on the deal and Wells Fargo was an additional underwriter.
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