Message #19 From:
NewsBot Date: November 14, 2006 11:29:00 AM
ABC News AmerisourceBergen Announces New Financing
VALLEY FORGE, Pa.--(BUSINESS WIRE)--AmerisourceBergen Corporation (NYSE:ABC) today announced the completion
of a new $750 million multi-currency revolving credit facility,
replacing three existing credit facilities, and the amendment of its
$700 million securitization facility, which lowered the amount available
under that facility to $500 million. The Company improved terms and
conditions in both financings.
“Our new financings reflect both our lower
working capital needs and the opportunity to consolidate our revolvers
to better facilitate our international activities,”
said Michael D. DiCandilo, Executive Vice President and Chief Financial
Officer of AmerisourceBergen. “The result will
be lower interest expense and greater financial flexibility in the
future.”
The Company has completed the arrangement of a five-year, $750 million
senior unsecured multi-currency revolving credit facility that replaces
three senior unsecured revolving credit facilities totaling
approximately $858 million (a $700 million US facility, a C$135 million
Canadian facility and a £20 million United
Kingdom facility) which were set to expire in 2009. The new facility was
arranged with improved terms and conditions and will expire on November
14, 2011.
The Company has also completed the amendment of its securitization
program for AmerisourceBergen Drug Corporation’s
trade receivables. The amended program provides for a reduction to $500
million from $700 million and extends the maturity to November 13, 2009.
The amended program improves the terms and conditions under the original
program.
About AmerisourceBergen
AmerisourceBergen (NYSE:ABC) is one of the world’s
largest pharmaceutical services companies serving the United States,
Canada and selected global markets. Servicing both pharmaceutical
manufacturers and healthcare providers in the pharmaceutical supply
channel, the Company provides drug distribution and related services
designed to reduce costs and improve patient outcomes. AmerisourceBergen’s
service solutions range from pharmacy automation and pharmaceutical
packaging to pharmacy services for skilled nursing and assisted living
facilities, reimbursement and pharmaceutical consulting services, and
physician education. With more than $61 billion in annual revenue,
AmerisourceBergen is headquartered in Valley Forge, PA, and employs more
than 14,000 people. AmerisourceBergen is ranked #27 on the Fortune 500
list. For more information, go to www.amerisourcebergen.com.
Forward Looking Statement
This news release may contain certain "forward-looking statements"
within the meaning of Section 27A of the Securities Act of 1933 and
Section 21E of the Securities Exchange Act of 1934. These statements are
based on management’s current expectations and
are subject to uncertainty and changes in circumstances. Actual results
may vary materially from the expectations contained in the
forward-looking statements. The forward-looking statements herein
include statements addressing management’s
views with respect to future financial and operating results and the
benefits, efficiencies and savings to be derived from the Company’s
integration plan to consolidate its distribution network. The following
factors, among others, could cause actual results to differ materially
from those described in any forward-looking statements: competitive
pressures; the loss of one or more key customer or supplier
relationships; customer defaults or insolvencies; changes in customer
mix; supplier defaults or insolvencies; changes in pharmaceutical
manufacturers' pricing and distribution policies or practices; adverse
resolution of any contract or other disputes with customers (including
departments and agencies of the U.S. Government) or suppliers;
regulatory changes; changes in U.S. government policies (including
reimbursement changes arising from the Medicare Modernization Act);
declines in the amounts of market share rebates offered by
pharmaceutical manufacturers to the PharMerica Long-Term Care business,
declines in the amounts of rebates that the PharMerica Long-Term Care
business can retain, and/or the inability of the business to offset the
rebate reductions that have already occurred or any rebate reductions
that may occur in the future; any disruption to or other adverse effects
upon the PharMerica Long-Term Care business caused by the announcement
of the Company’s agreement to combine the
PharMerica Long-Term Care business with the institutional pharmacy
business of Kindred Healthcare, Inc. into a new public company that will
be owned 50% by the Company’s shareholders
(the “PharMerica LTC Transaction”);
the inability of the Company to successfully complete the PharMerica LTC
Transaction; fluctuations in market interest rates; operational or
control issues arising from the Company’s
outsourcing of information technology activities; the Pharmaceutical
Distribution segment’s ability to continue to
successfully transition its business model to fee-for-service; success
of integration, restructuring or systems initiatives; fluctuations in
the U.S. dollar – Canadian dollar exchange
rate and other foreign exchange rates; economic, business, competitive
and/or regulatory developments in Canada, the United Kingdom and
elsewhere outside of the United States; acquisition of businesses that
do not perform as we expect or that are difficult for us to integrate or
control; and other economic, business, competitive, legal, regulatory
and/or operational factors affecting the business of the Company
generally. Certain additional factors that management believes could
cause actual outcomes and results to differ materially from those
described in forward-looking statements are set forth (i) in Item 1
(Business) under the heading “Certain Risk
Factors” in the Company’s
Annual Report on Form 10-K for the fiscal year ended September 30, 2005
and elsewhere in that report and (ii) in other reports filed by the
Company pursuant to the Securities Exchange Act of 1934.
