Akorn Obtains $675 Million of Loans for Hi-Tech AcquisitionChristine Idzelis
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.