By Ransdell Pierson
NEW YORK, March 12 (Reuters) - Drugmaker Pfizer Inc on Thursday said it had lined up 29 additional lenders, beyond five previously secured, to provide all $22.5 billion in loans for its planned $68 billion purchase of U.S. rival Wyeth .
'We've achieved a significant milestone,' said Pfizer spokeswoman Joan Campion, who noted the far larger slate of lenders is added security the deal will be completed because none are loaning Pfizer more than $1.5 billion.
Pfizer previously had said it had lined up a bridge loan commitment for up to $22.5 billion from a syndicate of five lenders comprised of JPMorgan Chase, Bank of America Corp, Barclays Bank, Citigroup Global Markets and Goldman Sachs Credit Partners.
The unsecured 364-day bridge term loan was syndicated to the 29 new lenders on Thursday, who will join the five initial bridge lenders.
The merger -- the third-largest in the drug industry since 1998 -- would help Pfizer cope with a major revenue gap in 2011, when its $12 billion-a-year cholesterol fighter Lipitor will face competition from cheaper generics.
The deal was made subject to Pfizer's financing sources not backing out should the company's financial health suffer a material adverse change or should it fail to maintain a certain credit rating.
Pfizer would have to pay Wyeth a $4.5 billion breakup fee if it were unable to secure financing and complete the merger.
The companies aim to complete the transaction at the end of the 2009 third quarter or during the fourth quarter.
Pfizer had agreed to pay $50.19 -- $33 in cash and 0.985 share of its stock -- for each Wyeth share. The $22.5 billion in loans would account for roughly one third of the purchase price.
(Reporting by Ransdell Pierson; editing by Carol Bishopric) Keywords: PFIZER WYETH/ (Reuters Messaging: ransdell.pierson.reuters.com@reuters.net; 646-223-6034; ransdell.pierson@reuters.com) COPYRIGHT Copyright Thomson Reuters 2009. All rights reserved. The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.
NEW YORK, March 12 (Reuters) - Drugmaker Pfizer Inc on Thursday said it had lined up 29 additional lenders, beyond five previously secured, to provide all $22.5 billion in loans for its planned $68 billion purchase of U.S. rival Wyeth .
'We've achieved a significant milestone,' said Pfizer spokeswoman Joan Campion, who noted the far larger slate of lenders is added security the deal will be completed because none are loaning Pfizer more than $1.5 billion.
Pfizer previously had said it had lined up a bridge loan commitment for up to $22.5 billion from a syndicate of five lenders comprised of JPMorgan Chase, Bank of America Corp, Barclays Bank, Citigroup Global Markets and Goldman Sachs Credit Partners.
The unsecured 364-day bridge term loan was syndicated to the 29 new lenders on Thursday, who will join the five initial bridge lenders.
The merger -- the third-largest in the drug industry since 1998 -- would help Pfizer cope with a major revenue gap in 2011, when its $12 billion-a-year cholesterol fighter Lipitor will face competition from cheaper generics.
The deal was made subject to Pfizer's financing sources not backing out should the company's financial health suffer a material adverse change or should it fail to maintain a certain credit rating.
Pfizer would have to pay Wyeth a $4.5 billion breakup fee if it were unable to secure financing and complete the merger.
The companies aim to complete the transaction at the end of the 2009 third quarter or during the fourth quarter.
Pfizer had agreed to pay $50.19 -- $33 in cash and 0.985 share of its stock -- for each Wyeth share. The $22.5 billion in loans would account for roughly one third of the purchase price.
(Reporting by Ransdell Pierson; editing by Carol Bishopric) Keywords: PFIZER WYETH/ (Reuters Messaging: ransdell.pierson.reuters.com@reuters.net; 646-223-6034; ransdell.pierson@reuters.com) COPYRIGHT Copyright Thomson Reuters 2009. All rights reserved. The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.