LIONVILLE, Pa. (March 1) – Medical components manufacturer West Pharmaceutical Services, Inc. has completed the planned prepayment of $100 million of 6.81-percent notes due April 8, 2009, the company announced Feb. 28.
As stated previously, West will incur a first quarter 2006 pretax charge of approximately $6 million for costs incurred in connection with the prepayment.
In order to finance the prepayment, West issued new seven- and ten-year floating-rate notes 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.