Bergen Brunswig to Issue Notes With AmeriSource
Pharmaceutical wholesalers Bergen Brunswig Corp. in Orange and AmeriSource Health Corp. said Tuesday they plan to issue $400 million in senior notes after their merger closes.
The notes, which would be due 2008, will be issued in a private placement and are expected to be resold by initial buyers to financial institutions, the companies said.
The proceeds from the sale of the notes will be used together with proceeds expected from a new credit line to repay AmeriSource’s and Bergen’s existing senior secured credit facilities, to pay fees and expenses associated with the merger, to repay certain of Bergen’s other indebtedness, and for general corporate purposes, the companies said.
Bergen Brunswig and AmeriSource, which is based in Valley Forge, Pa., have said they expect the merger to close before the end of August.
Bergen Brunswig’s shares slipped 32 cents to $21.13, while AmeriSource’s stock fell $1.33 a share to $58.14. Both stocks trade on the New York Stock Exchange.
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