Warner Chilcott Corp.'s $1.4 billion "B" loan traded at 100 5/8-100 7/8 after going as high as 101 1/4-101 3/8. The "B" is part of a $1.79 billion financing that backed the pharmaceutical company's acquisition by Bain Capital, DLJ Merchant Banking, J.P. Morgan Partners and Thomas H. Lee Partners (LMW 1/17).
The credit, which is led by Deutsche Bank and Credit Suisse First Boston, also includes a $150 million revolver and a $240 delayed draw term loan. Two weeks ago the "B" loan was increased by $150 million to $1.4 billion while a simultaneous bond issuance was decreased by the same amount. The manufacturer of women's health and dermatology products has total leverage of over seven times. "It's definitely one of the highest ones I've seen in a while," Arthur Wong, an analyst with Standard & Poor's said of the deal's leverage before its allocation (LMW, 1/17). However, the company has very steady product revenues, buysiders noted.