2 Mar 2006
Lionville, Pennsylvania - Medical components manufacturer West Pharmaceutical Services, Inc. has completed the planned prepayment of $100 million of 6.81-percent loan certificates due 8 April, 2009, the company announced on 28 Feb.
As stated previously, West will incur a first quarter 2006 pretax charge of approximately $6 million in connection with the prepayment.
In order to finance the prepayment, West issued new seven- and ten-year floating-rate loan certificates in the amount of 81.5 million euros - about $100 million - and, separately, entered into interest rate swap agreements fixing the interest rates on the new notes at 4.215 percent for 20.4 million euros of seven-year notes, and 4.38 percent for 61.1 million euros of ten-year notes.
In addition, the company has amended the terms its $200 million revolving credit agreement, including an extension of the maturity date to Feb. 27, 2011, and a reduction of the interest rate spreads applicable to amounts borrowed under the agreement.
West also announced that its board of directors has declared a dividend of 12 cents per share for the second quarter of 2006. The dividend will be paid on May 3, 2006, to shareholders of record on April 19, 2006.
From Rubber & Plastics News (A Crain publication)
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