(Add further financing details)
By Claire Ruckin
LONDON, Sept 19 (Reuters) - Three banks have lined up €430m of leveraged loans to back private equity firm CVC Capital Partners’ acquisition of the remaining assets in Teva Pharmaceutical Industries’ women’s health business, banking sources said.
Teva said on Monday it would sell the remaining assets in its women’s health business for US$1.38bn.
It will use proceeds from these sales, along with those from its recently announced US$1.1bn sale of contraceptive brand Paragard to a unit of Cooper Cos, to repay debt, the company said.
Bank of America Merrill Lynch, Credit Suisse and Jefferies are leading the leveraged loan financing, with two to three other banks expected to join shortly, the source said.
The financing comprises a €375m term loan and a €55m revolving credit facility, the sources said.
Leverage is in the high 4s, with a 55% loan-to-value, the sources said.
The loan is unlikely to launch for syndication until November given it is a carve-out from a public company, the sources said.
Israel-based Teva, the world’s largest maker of generic drugs, has been looking at divestures to help reduce its US$35bn debt pile. (Editing by Christopher Mangham)