Bloomberg News

Prestige Obtains $960 Million Financing for Glaxo Units Purchase

January 09, 2012

Jan. 5 (Bloomberg) -- Prestige Brands Holdings Inc., the maker of Comet cleaner and Murine eye drops buying 17 over-the- counter medicine brands from GlaxoSmithKline Plc, is seeking $960 million of debt to finance the transaction.

The company has obtained financing commitments from Citibank Inc., Morgan Stanley and Royal Bank of Canada, Prestige Brands said in a Dec. 27 regulatory filing.

The transaction includes a $620 million, seven-year term loan, a $50 million, five-year revolving line of credit and a $290 million bridge facility for one year, the New York-based company said.

Prestige agreed to buy products from London-based Glaxo including digestive helpers Beano and Gaviscon, painkillers Ecotrin and Goody’s and Sominex sleep tablets for $660 million. The deal is expected to close in the first half of this year, said Ronald Lombardi, chief financial officer, according to a transcript of a company conference call.

Leverage, or debt to earnings before interest, taxes, depreciation and amortization, at March 31 is expected to be less than five times, and will come down to 3.5 times by the end of fiscal 2014, Lombardi said.

--Editors: Faris Khan, Chapin Wright

To contact the reporter on this story: Krista Giovacco in New York at kgiovacco1@bloomberg.net

To contact the editor responsible for this story: Faris Khan at fkhan33@bloomberg.net


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