The Associated Press August 20, 2010, 7:06PM ET

Warner Chilcott declares special dividend

Irish drug maker Warner Chilcott PLC said Friday it has completed a loan and a debt offering necessary to pay a special dividend of $8.50 per share that it announced last month.

The company amended its senior secured credit facilities to borrow an additional $1.5 billion in term loans.

Also Friday, it closed on its $750 million offering of 7.75 percent senior notes due 2018.

The dividend, payable to shareholders of record as of Aug. 30, will be paid on Sept 8.

The cost of the dividend is about $2.14 billion.

Shares of Warner Chilcott traded after Aug. 30 and before Sept. 9 will have a due bill attached for the special cash dividend payable on Sept. 8, a requirement of Nasdaq rules regarding dividends that exceed 25 percent of a company's stock price.

Shareholders who purchase stock during that period are entitled to the special dividend, while sellers are not. Investors who buy shares on or after Sept. 9 will not be entitled to the dividend.

The company also revised downward its estimate of adjusted cash net income for 2010 as a result of expected increased after-tax cash interest expenses associated with the additional debt.

The new estimated range is $3.25 to $3.35. The previous range was $3.45 to $3.55 per share.

Analysts surveyed by Thomson Reuters expect $3.54 per share.

The company also said its 2011 earnings will drop by 60 cents to 65 cents per share as a result of the recapitalization. It previously expected a 65- to 70-cent reduction.

Shares fell 62 cents, or 2.2 percent, to close at $28.12. They rose 63 cents in aftermarket trading.


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