NEW YORK, Aug 23 (Reuters) - Warner Chilcott Ltd, a specialty drug maker, is acquiring Procter & Gamble Co prescription drug business for about $3 billion, the Wall Street Journal said on Sunday, citing people familiar with the matter.
A transaction may be announced as soon as Monday, the newspaper said. The business has about $2 billion of annual sales, it said.
Six lenders led by Bank of America Corp and JPMorgan Chase & Co will provide up to $4 billion of financing, including $1 billion to refinance Warner Chilcott debt, it said.
Neither Warner Chilcott nor Procter & Gamble were immediately available for comment.
Cerberus Capital Management LP and drugmaker Forest Laboratories Inc were also interested in the business, the newspaper said, citing the people familiar with the matter.
Warner Chilcott, based in Rockaway, New Jersey, will run the business as a wholly-owned unit, the newspaper said.
The acquisition will be the largest involving a leveraged loan in 2009, the newspaper said, citing data from Dealogic.
It said this suggests more healing in credit markets, and that Warner Chilcott can absorb the banking fees because interest rates remain historically low.
(Reporting by Jonathan Stempel; Editing by Diane Craft) Keywords: PROCTER&GAMBLE/WARNERCHILCOTT (jon.stempel@thomsonreuters.com +1 646 223 6317; Reuters Messaging: jon.stempel.reuters.com@reuters.net) 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.
A transaction may be announced as soon as Monday, the newspaper said. The business has about $2 billion of annual sales, it said.
Six lenders led by Bank of America Corp and JPMorgan Chase & Co will provide up to $4 billion of financing, including $1 billion to refinance Warner Chilcott debt, it said.
Neither Warner Chilcott nor Procter & Gamble were immediately available for comment.
Cerberus Capital Management LP and drugmaker Forest Laboratories Inc were also interested in the business, the newspaper said, citing the people familiar with the matter.
Warner Chilcott, based in Rockaway, New Jersey, will run the business as a wholly-owned unit, the newspaper said.
The acquisition will be the largest involving a leveraged loan in 2009, the newspaper said, citing data from Dealogic.
It said this suggests more healing in credit markets, and that Warner Chilcott can absorb the banking fees because interest rates remain historically low.
(Reporting by Jonathan Stempel; Editing by Diane Craft) Keywords: PROCTER&GAMBLE/WARNERCHILCOTT (jon.stempel@thomsonreuters.com +1 646 223 6317; Reuters Messaging: jon.stempel.reuters.com@reuters.net) 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.