VALLEY FORGE, Pa.--(BUSINESS WIRE)--Dec. 2,
2004--AmerisourceBergen Corporation (NYSE:ABC), one of the largest
pharmaceutical services company in the U.S., today announced at its
Investor Day in Columbus, Ohio, the completion of a new $700 million
revolving credit facility; the amendment of its $1.05 billion
securitization program; and the redemption of its $300 million 5%
Convertible Subordinated Notes due 2007.
"Our strong operating cash flow resulting from solid operating
performance and the evolution to a new business model has enabled us
to considerably improve our capital structure," said Michael D.
DiCandilo, Senior Vice President and Chief Financial Officer of
AmerisourceBergen. "The result will be significantly reduced interest
expense and greater financial flexibility in the future."
The Company has completed the arrangement of a five-year, $700
million senior unsecured revolving credit facility that replaces two
facilities aggregating $1.18 billion: a $1.0 billion senior secured
revolving credit expiring in August 2006 and an amortizing $180
million senior secured term loan facility scheduled to mature in
August 2006. The new facility was arranged with substantially improved
terms and conditions as compared to the terminated facilities and will
expire on December 2, 2009. The Company has obtained the new facility
for general corporate purposes.
The Company has also completed the amendment of its $1.05 billion
securitization program for the Company's trade receivables. The
amended program provides $700 million under a three-year revolving
tranche and $350 million under a 364-day revolving tranche. The
program was amended in order to improve the terms and conditions under
the original program.
The Company also announced that its subsidiary, AmerisourceBergen
Services Corporation, will redeem all of its outstanding $300 million
5% Convertible Subordinated Notes due 2007 (CUSIP No. 03071PAB8 and
CUSIP No. 03071PAD4), at the redemption price of 102.143% of the
principal amount of the Notes plus accrued interest on January 3,
2005. Notification of redemption was mailed on December 2, 2004.
Questions regarding the redemption notice should be addressed to
J.P. Morgan Chase, the redemption agent and trustee, at 800-275-2048.
The Company is hosting an Investor Day today at the Company's new
distribution center in Columbus, Ohio. The meeting will be webcast
beginning at 11:30 am EST, and will end at approximately 2:00 pm EST.
The webcast will be accessible through the Investor Relations page of
www.amerisourcebergen.com, and will remain available as a replay for
approximately 30 days.
About AmerisourceBergen
AmerisourceBergen (NYSE:ABC) is one of the largest pharmaceutical
services companies in the United States. 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,
bedside medication safety systems, and pharmaceutical packaging to
pharmacy services for skilled nursing and assisted living facilities,
reimbursement and pharmaceutical consulting services, and physician
education. With more than $48 billion in operating revenue,
AmerisourceBergen is headquartered in Valley Forge, PA, and employs
more than 14,000 people. AmerisourceBergen is ranked #22 on the
Fortune 500 list. For more information, go to
www.amerisourcebergen.com.
FORWARD-LOOKING STATEMENTS
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. Forward-looking statements may include statements
addressing AmerisourceBergen's future financial and operating results.
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 relationships; customer insolvencies; changes in customer
mix; changes in pharmaceutical manufacturers' pricing and distribution
policies or practices; regulatory changes; changes in U.S. government
policies (including changes in government policies pertaining to drug
reimbursement); changes in market interest rates; and other economic,
business, competitive, regulatory and/or operational factors affecting
the business of AmerisourceBergen generally.
More detailed information about these factors is set forth in
AmerisourceBergen's filings with the Securities and Exchange
Commission, including its Annual Report on Form 10-K for fiscal 2003.
AmerisourceBergen is under no obligation to (and expressly
disclaims any such obligation to) update or alter any forward looking
statements whether as a result of new information, future events or
otherwise.
CONTACT: AmerisourceBergen Corporation, Valley Forge
Michael N. Kilpatric, 610-727-7118
mkilpatric@amerisourcebergen.com
SOURCE: AmerisourceBergen Corporation