Jan. 28 (Bloomberg) -- Par Pharmaceutical Cos., a generic drug maker, set the rate it will pay on a $1.06 billion term loan B it’s seeking to refinance debt, according to a person with knowledge of the transaction.
The debt, maturing in 2019, will pay interest at 3.25 percentage points more than the London interbank offered rate and will be sold at par, said the person, who asked not to be identified because the information is private. Libor, a rate banks say they can from each other, will have a 1 percent floor.
Lenders are being offered six months of soft-call protection of 101 cents, meaning the company would have to pay one cent more than face value to refinance the debt during the first six months.
Bank of America Corp., Deutsche Bank AG, Goldman Sachs Group Inc., Citigroup Inc., Royal Bank of Canada and Bank of Montreal are arranging the deal and commitments are due by noon on Jan. 31 in New York, according to the person. The debt is rated B1 by Moody’s Investors Service and B+ by Standard & Poor’s.
The company’s existing term loan pays interest at 3.75 percentage points more than Libor, with a 1.25 percent floor, according to data compiled by Bloomberg. The debt was sold to investors at 99 cents on the dollar and was quoted at 101.75 cents on the dollar today, the data show.
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