Mylan Announces Pricing of Tender Offers for its 5.750% Senior Notes Due 2010 and 6.375% Senior Notes Due 2015
17 September 2007 - 10:30PM
PR Newswire (US)
PITTSBURGH, Sept. 17 /PRNewswire-FirstCall/ -- Mylan Laboratories
Inc. (NYSE:MYL) ("Mylan") announced today certain pricing terms of
its previously announced cash tender offers and consent
solicitations for its 5.750% Senior Notes due 2010 (CUSIP No.
628530AE7) (the "2010 Notes") and 6.375% Senior Notes due 2015
(CUSIP Nos. 628530AF4, 628530AC1) (the "2015 Notes" and, together
with the 2010 Notes, the "Notes"), which are being conducted
pursuant to the terms and subject to the conditions described in
the Offer to Purchase and Consent Solicitation Statement and
related Letter of Instructions dated August 31, 2007 (collectively,
the "Offer to Purchase"). As previously announced, Mylan is making
the tender offers as part of a broader strategy to establish its
new global capital structure and in preparation for the
consummation of its proposed acquisition of Merck's generic
pharmaceutical business pursuant to a Share Purchase Agreement,
dated May 12, 2007, between Mylan and Merck Generics Holding GmbH,
Merck S.A., Merck Internationale Beteiligung GmbH and Merck KGaA
(the "Transaction"). The total consideration for each series of
Notes was determined as of 2:00 p.m., New York City time, on
September 14, 2007, using the bid-side yield of the 4.125% U.S.
Treasury Note due August 15, 2010 (the "Reference Security"), in
each case plus a fixed spread of 50 basis points and based on an
assumed payment date of October 1, 2007 (the "Settlement Date").
The yield on the Reference Security was 4.101% and the tender offer
yield in each case was 4.601%. Accordingly, the total
consideration, excluding accrued and unpaid interest, for each
$1,000 principal amount of Notes validly tendered and not validly
withdrawn on or prior to 5:00 p.m., New York City time, on
September 14, 2007 (the "Consent Payment Deadline") is $1,030.52 in
the case of the 2010 Notes and $1,075.13 in the case of the 2015
Notes, which in each case includes a "Consent Payment" of $30.00
per $1,000 principal amount of Notes (the "Total Consideration").
In addition to the applicable Total Consideration, tendering
holders will receive accrued and unpaid interest to, but not
including, the Settlement Date with respect to Notes validly
tendered and not validly withdrawn prior to the Consent Payment
Deadline. Each of the tender offers will expire at 12:00 midnight,
New York City time, on September 28, 2007, unless any tender offer
is extended or earlier terminated at the sole discretion of Mylan
(the "Expiration Time"). Holders who validly tender their Notes
after the Consent Payment Deadline and on or prior to the
Expiration Time will receive the Total Consideration applicable to
the Notes so tendered minus the Consent Payment, plus accrued and
unpaid interest to, but not including, the Settlement Date. As of
the Consent Payment Deadline, Mylan had received tenders of Notes
and deliveries of related consents for approximately $147.4 million
in aggregate principal amount of the 2010 Notes, representing
98.26% of the outstanding 2010 Notes, and $349.8 million in
aggregate principal amount of the 2015 Notes, representing 99.94%
of the outstanding 2015 Notes. Mylan's obligation to accept, and
pay for, Notes of a series validly tendered pursuant to a tender
offer is conditioned upon the satisfaction or waiver of various
conditions, including consummation of the Transaction and certain
general conditions described in the Offer to Purchase. The complete
terms and conditions of the tender offers and consent solicitations
are described in the Offer to Purchase, copies of which may be
obtained by contacting Global Bondholder Services Corporation, the
information agent for the tender offers and consent solicitations,
at (866) 804-2200 (toll-free). Questions regarding the tender
offers and consent solicitations may be directed to the Dealer
Managers and Solicitation Agents for the tender offers and consent
solicitations, Merrill Lynch, Pierce, Fenner & Smith
Incorporated, which may be contacted at (212) 449-4914 (collect) or
(888) 654- 8637 (toll-free), and Citigroup Global Markets Inc.,
which may be contacted at (212) 723-6106 (collect) or (800)
558-3745 (toll-free). This announcement is not an offer to
purchase, a solicitation of an offer to purchase or a solicitation
of consents with respect to any securities. The tender offers and
consent solicitations are being made solely by Mylan's Offer to
Purchase, as the same may be amended or supplemented by Mylan.
DATASOURCE: Mylan Laboratories Inc. CONTACT: Kris King for Mylan
Laboratories Inc., +1-724-514-1800 Web site: http://www.mylan.com/
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