Bank Syndicate Amends Actavis Revolver
On June 30, 2014, Actavis plc, Actavis Capital S. r.l., Actavis, Bank of America and a syndicate of banks participating as lenders entered into an amendment agreement to amend and restate Actavis Capital’s existing $750 million senior unsecured amended and restated revolving credit loan facility dated as of September 16, 2011, as amended by that certain revolving credit amendment agreement, dated as of August 1, 2013. The amendment became effective in accordance with its terms on June 30, 2014.
The amendment modifies the consolidated leverage ratio financial covenant to permit the consummation of mergers and conform to the maximum consolidated leverage ratio financial covenant contained in Actavis Capital’s amended and restated unsecured term loan credit facility, dated March 31, 2014, permits certain intercompany restructuring transactions following the mergers, permits the consummation of the mergers, updates the definition of the Foreign Account Tax Compliance Act, amends the covenants to provide subsidiary guarantees, provides for a guaranty by Warner Chilcott Limited and amends the negative covenants to include limitations on the activities of Actavis plc and certain of its subsidiaries.
In addition, the amendment will extend the maturity of the existing revolver by one year, to September 16, 2018.
The amended and restated revolver provides that loans will bear interest of a per annum rate equal to either a base rate, plus an applicable margin per annum varying from 0.00% per annum to 0.75% per annum depending on the debt rating or a Eurodollar rate, plus an applicable margin varying from 0.875% per annum to 1.75% per annum depending on the debt rating.