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Title: |
Commitment Letter |
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Date: |
2000 |
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Preview shows 4KB of 18KB total |
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$41 |
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ID: |
#328851 |
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May 20, 2000
Watson Pharmaceuticals, Inc.
311 Bonnie Circle
Corona, California 91720
Attn: Allen Y. Chao
Chairman, President and Chief Executive Officer
Michael E. Boxer
Chief Financial Officer
Re: $1,100,000,000 Senior Secured Credit Facilities
COMMITMENT LETTER
Gentlemen:
You have advised Societe Generale ("SG") and SG Cowen Securities
Corporation ("SG Cowen") that Watson Pharmaceuticals, Inc. (the "Company")
proposes to acquire Schein Pharmaceuticals, Inc. ("Schein", the acquisition of
Schein being the "Acquisition") and that the total consideration will be no more
than $975,000,000 (excluding transaction costs) for the Acquisition and the
refinancing of certain outstanding indebtedness of Schein. In connection with
the foregoing transactions, you have advised us that you desire to establish
senior secured credit facilities in an aggregate amount of $1,100,000,000 (the
"Facilities") to finance the Acquisition and the related transaction fees and
costs, to refinance certain existing indebtedness of Schein, and to finance
working capital and other general corporate needs of the Company and its
subsidiaries.
SG Cowen agrees to act as the arranger and sole book runner (the
"Arranger") and is pleased to inform you that SG agrees to be a Lender (as
defined below) under the Facilities and hereby commits to provide 100% of the
Facilities and to act as Administrative Agent and Syndication Agent, subject to
the terms and conditions described in this letter, the attached Annex I and the
Fee Letter (this letter, Annex I and the Fee Letter being collectively referred
to herein as the "Commitment Letter").
The anticipated sources and uses of funds for the closing of the
Acquisition and the related transactions are set forth on the attached Schedule.
SYNDICATION
SG and the Arranger reserve the right, prior to or after the execution of
definitive documentation with respect to the Facilities, to syndicate all or a
portion of the commitment to one or more banking or financial institutions or
institutional lenders that will become parties to such definitive documentation
pursuant to a syndication to be managed by the Arranger (the banking or
financial institutions and institutional lenders becoming parties to such
definitive documentation being collectively referred to herein as the
"Lenders"). You understand that the Arranger intends to commence syndication
efforts promptly.
The Arranger will manage the syndication in consultation with you,
including the timing of all offers to potential Lenders, the acceptance of
commitments, and the determination of the amounts offered and the compensation
provided.
You agree to take all action as the Arranger may reasonably request to
assist it in forming a syndicate acceptable to the Arranger and you. Your
assistance to the Arranger in forming such a syndicate shall include but not be
limited to: (i) making senior management and representatives of Schein and the
Company available to participate in informational meetings with potential
Lenders at such times and places as the Arranger may reasonably request; (ii)
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