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Akorn Obtains $675 Million of Loans for Hi-Tech Acquisition

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Aug. 28 (Bloomberg) -- Akorn Inc., a maker of generic eye-care products, obtained $675 million of financing commitments backing its purchase of Hi-Tech Pharmacal Co.

The credit pact consists of a $600 million term loan and a $75 million revolving credit line, according to a regulatory filing today. JPMorgan Chase & Co. is providing the debt commitments.

Akorn agreed to buy Hi-Tech Pharmacal for $640 million in cash to expand into areas including cold and cough treatments. The company expects the deal will be completed in the first quarter of 2014.

The seven-year term loan will help fund the merger, while the five-year revolver will be used by Lake Forest, Illinois-based Akorn for general corporate purposes, according to the regulatory filing.

Under a revolver, money can be borrowed again once it’s repaid; in a term loan, it can’t.

To contact the reporter on this story: Christine Idzelis in New York at cidzelis@bloomberg.net

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

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