Warner Chilcott Commences Tender Offer for its 8.75% Senior Subordinated Notes due 2015
December 15 2009 - 10:13PM
PR Newswire (US)
ARDEE, Ireland, Dec. 15 /PRNewswire-FirstCall/ -- Warner Chilcott
plc (NASDAQ:WCRX) today announced that its subsidiary Warner
Chilcott Corporation (the "Company") has commenced a cash tender
offer, on the terms and subject to the conditions set forth in the
Company's Offer to Purchase and Consent Solicitation Statement
dated December 15, 2009 (the "Offer to Purchase"), for any and all
of its outstanding 8.75% senior subordinated notes due 2015 (the
"Notes"). The Company is also soliciting consents to certain
proposed amendments to the indenture governing the Notes to, among
other things, eliminate substantially all of the restrictive
covenants and certain events of default and eliminate or modify
related provisions contained in the indenture. The Offer to
Purchase more fully sets forth the terms of the tender offer and
consent solicitation. The Notes and other information relating to
the tender offer are listed in the table below: Title Principal
Tender CUSIP/ of Amount Offer Consent Total ISIN No. Security
Outstanding Consideration(1) Payment(2) Consideration(1) --------
-------- ----------- ---------------- ---------- ----------------
8.75% Senior Notes due 93443MAC5 2015 $380,000,000 $1017.50 $30.00
$1047.50 (1) Per $1,000 principal amount of Notes and excluding
accrued and unpaid interest, which will be paid in addition to the
Total Consideration or Tender Offer Consideration, as applicable.
(2) Per $1,000 principal amount of Notes tendered prior to the
Consent Date (as defined below). Holders who validly tender their
Notes prior to 11:59 p.m., New York City time, on Tuesday, December
29, 2009, (the "Consent Date") shall receive total consideration of
$1047.50 per $1,000 principal amount of Notes tendered, which
includes a consent payment of $30.00 per $1,000 principal amount of
Notes. Holders must validly tender and not validly withdraw their
Notes at or prior to the Consent Date in order to be eligible to
receive the total consideration (including the consent payment).
Holders tendering their Notes after the Consent Date will receive
only the tender offer consideration of $1017.50 per $1,000
principal amount of Notes tendered. The Company will pay accrued
and unpaid interest on all Notes tendered and accepted for payment
in the tender offer from the last interest payment date to, but not
including, the date on which the Notes are purchased. The tender
offer is scheduled to expire at 11:59 p.m., New York City time, on
January 14, 2010, unless extended or earlier terminated by the
Company (the "Expiration Date"). Any Notes tendered on or prior to
the Consent Date that are not validly withdrawn on or prior to the
Consent Date may not be withdrawn thereafter except as required by
law. Tenders of Notes after the Consent Date may not be validly
withdrawn except as required by law. Holders may not tender their
Notes without delivering their consents to the proposed amendments
to the indenture and may not deliver their consents without
tendering their Notes pursuant to the tender offer. The proposed
amendments will not become effective, however, until after a
majority in aggregate principal amount of the outstanding Notes,
whose holders have delivered consents to the proposed amendments,
have been accepted for payment. The Company has reserved the right
to (and expects to) accept for purchase Notes tendered prior to the
Consent Date on a date prior to the Expiration Date (the "Early
Settlement Date," expected to be December 30, 2009). On the Early
Settlement Date, the Company will also pay accrued and unpaid
interest from the last interest payment date for the Notes up to,
but not including, the Early Settlement Date on the Notes accepted
for purchase. The Company's obligation to accept for purchase and
to pay for Notes validly tendered and not withdrawn pursuant to the
tender offer and the consent solicitation is subject to the
satisfaction or waiver, in the Company's discretion, of certain
conditions, which are more fully described in the Offer to
Purchase, including, among other things, receipt of the requisite
number of consents to the proposed amendments to the indenture and
the Company's consummation of an amendment to its senior secured
facilities to provide for an additional $350.0 million Term B loan
facility on or prior to the Early Settlement Date. The Company
expects to fund the total consideration with proceeds from the new
$350.0 million Term B loan facility together with cash on hand. The
Company has retained Banc of America Securities LLC to serve as the
dealer manager and solicitation agent for the tender offer and
consent solicitation. Questions regarding the tender offer and
consent solicitation may be directed to (646) 855-3401 (collect) or
(888) 292-0070 (toll-free). Requests for documents may be directed
to Global Bondholder Services, Inc., the information agent for the
tender offer, at (212) 430-3774 (banks and brokers) or (866)
470-3900 (toll-free). This press release is for informational
purposes only and is not an offer to purchase, a solicitation of an
offer to purchase or a solicitation of consent with respect to any
securities. The tender offer and consent solicitation is being made
solely pursuant to the Offer to Purchase and the related Letter of
Transmittal and Consent, which set forth the complete terms of the
tender offer and consent solicitation. Warner Chilcott Warner
Chilcott is a leading specialty pharmaceutical company currently
focused on the gastroenterology, women's healthcare, dermatology
and urology segments of the U.S. and Western European
pharmaceuticals markets. Warner Chilcott is a fully integrated
company with internal resources dedicated to the development,
manufacturing and promotion of its products. WCRX-G. Read more on
http://www.wcrx.com/. Forward Looking Statements: This press
release contains forward-looking statements, including statements
concerning our operations, our economic performance and financial
condition, and our business plans and growth strategy and product
development efforts. These statements constitute forward-looking
statements within the meaning of Section 27A of the Securities Act
of 1933 and Section 21E of the Securities Exchange Act of 1934. The
words "may," "might," "will," "should," "estimate," "project,"
"plan," "anticipate," "expect," "intend," "outlook," "believe" and
other similar expressions are intended to identify forward-looking
statements. Readers are cautioned not to place undue reliance on
these forward-looking statements, which speak only as of their
dates. These forward-looking statements are based on estimates and
assumptions by our management that, although we believe to be
reasonable, are inherently uncertain and subject to a number of
risks and uncertainties. The following represent some, but not
necessarily all, of the factors that could cause actual results to
differ from historical results or those anticipated or predicted by
our forward-looking statements: our substantial indebtedness;
competitive factors in the industry in which we operate (including
the approval and introduction of generic or branded products that
compete with our products); our ability to protect our intellectual
property; a delay in qualifying our manufacturing facilities to
produce our products or production or regulatory problems affecting
either third party manufacturers upon whom we may rely for some of
our products or our own manufacturing facilities; pricing pressures
from reimbursement policies of private managed care organizations
and other third party payors, government sponsored health systems,
the continued consolidation of the distribution network through
which we sell our products, including wholesale drug distributors
and the growth of large retail drug store chains; the loss of key
senior management or scientific staff; adverse outcomes in our
outstanding litigation or an increase in the number of litigation
matters to which we are subject; government regulation affecting
the development, manufacture, marketing and sale of pharmaceutical
products, including our ability and the ability of companies with
whom we do business to obtain necessary regulatory approvals; our
ability to manage the growth of our business by successfully
identifying, developing, acquiring or licensing new products at
favorable prices and marketing such new products; our ability to
obtain regulatory approval and customer acceptance of new products,
and continued customer acceptance of our existing products; changes
in tax laws or interpretations that could increase our consolidated
tax liabilities; the other risks identified in our periodic filings
including our Annual Report on Form 10-K for the year ended
December 31, 2008, as amended, and our Current Report on Form 8-K
filed on November 2, 2009; and other risks detailed from
time-to-time in our public filings, financial statements and other
investor communications. We caution you that the foregoing list of
important factors is not exclusive. In addition, in light of these
risks and uncertainties, the matters referred to in our
forward-looking statements may not occur. We undertake no
obligation to publicly update or revise any forward-looking
statement as a result of new information, future events or
otherwise, except as may be required by law. DATASOURCE: Warner
Chilcott plc CONTACT: Rochelle Fuhrmann, Investor Relations,
+1-973-442-3281, Web Site: http://www.wcrx.com/
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