Warner Chilcott Plc (WCRX) said it has completed an amendment to its existing senior secured credit facilities, under which it has incurred an additional $1.5 billion of new term loans. As a result of recapitalization, the company lowered its adjusted cash net income outlook for fiscal 2010, and fiscal 2011.
The new term loan facilities are comprised of a $480 million Term Loan A bearing interest at LIBOR plus 4.25% with a four-year maturity, and a $1.02 billion Term Loan B bearing interest at LIBOR plus 4.25% with a LIBOR floor of 2.25% and a five-and-a-half-year maturity.
In connection with the amendment, the rates on the existing Term Loans A and B were increased by 0.5% and will now bear interest at LIBOR plus 3.75% and LIBOR plus 4.00% respectively, both with a LIBOR floor of 2.25%.
The company intends to use the proceeds from the new term loans and its $750 million offering of 7 3/4% senior notes due 2018, to fund a special cash dividend to its shareholders of $8.50 per share, or approximately $2.14 billion in the aggregate, and to pay related fees and expenses.
As a result, Warner Chilcott's board has declared a special cash dividend of $8.50 per share. The special cash dividend is payable to shareholders of record on August 30, 2010 and will be paid on September 8, 2010.
For the full year 2010, the company now expects adjusted cash net income or CNI of $3.25 to $3.35 per share, down from its prior estimate of $3.45 to $3.55 per share.
Warner Chilcott affirmed its full-year 2010 guidance for adjusted total revenue, which is expected to be near the lower end of the current guidance range of $2.90 billion to $2.95 billion. Analysts polled by Thomson Reuters expect the company to report earnings of $3.54 per share for the year on revenue of $3.02 billion. Analysts' estimates typically exclude special items.
For the full-year 2011, Warner Chilcott now estimates that its adjusted CNI will be reduced by $0.60 to $0.65 per share, compared to its prior guidance of $0.65 to $0.70 per share. Street expects earnings of $3.68 per share for the year 2011.
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April 24, 2026 15:15 ET Economics news flow was relatively light this week even as the conflict in the Middle East continued, raising concerns for policymakers. In the U.S., spending data, initial jobless claims and pending home sales were the highlights. Business confidence in the biggest euro area economy was in focus in Europe. Inflation data from Japan gained attention in Asia.