8-KMaterial AgreementsFinancial EventsExhibits & Filings

PFIZER INC 8-K Report, Material Agreement (Mar 12, 2009)

Filed March 12, 2009For Securities:PFE

Summary

This Form 8-K filing from Pfizer Inc. (PFE) on March 12, 2009, primarily concerns the financing arrangements for its previously announced Agreement and Plan of Merger with Wyeth, dated January 25, 2009. The report details the syndication of a $22.5 billion bridge term loan facility to an expanded group of twenty-nine lenders, in addition to the initial five lenders. This facility, administered by JPMorgan Chase, is intended to finance a portion of the consideration for the Wyeth acquisition. Investors should note that this filing signifies a key step in the financing of a major acquisition. The bridge loan agreement includes terms regarding interest rates, repayment, covenants, and events of default, which are standard for such large credit facilities. Pfizer and Wyeth are also preparing to file a Form S-4 Registration Statement which will include a proxy statement/prospectus for Wyeth stockholders, providing further details on the merger and urging investors to review these documents once available.

Key Highlights

  • 1Pfizer Inc. has syndicated a $22.5 billion bridge term loan facility to finance a portion of the consideration for its merger with Wyeth.
  • 2The syndication expanded the lender group to include twenty-nine additional lenders, alongside the initial five.
  • 3JPMorgan Chase is acting as the administrative agent for the 364-day bridge loan credit agreement.
  • 4The bridge facility is unsecured and provides flexible financing terms, including options for interest rate calculation and voluntary prepayments.
  • 5The agreement includes standard covenants and events of default, with provisions for accelerated repayment and increased interest rates.
  • 6Pfizer and Wyeth are in the process of filing a Form S-4 Registration Statement containing a proxy statement/prospectus for Wyeth stockholders regarding the merger.
  • 7Investors are encouraged to read the upcoming proxy statement/prospectus for detailed information on the proposed merger.

Frequently Asked Questions

The main purpose of this filing is to report the syndication of a $22.5 billion bridge term loan facility that Pfizer Inc. has entered into. This facility is intended to finance a portion of the cash consideration for its previously announced merger with Wyeth.

The bridge term facility is administered by JPMorgan Chase Bank, N.A., and has J.P. Morgan Securities Inc., Banc of America Securities LLC, Barclays Capital, Citigroup Global Markets Inc., and Goldman Sachs Credit Partners L.P. as joint lead arrangers. The syndication on March 12, 2009, expanded the lender group to include twenty-nine additional lenders.

The bridge loan is for an aggregate principal amount of up to $22.5 billion, is unsecured, and has a term of 364 days, with an option for Pfizer to extend it for up to 180 days under certain conditions. Interest will be calculated based on either a base rate or a reserve adjusted eurodollar rate, plus an applicable margin. Pfizer can voluntarily prepay the loans without premium or penalty.

Pfizer and Wyeth will be filing a Form S-4 Registration Statement with the SEC, which will include a proxy statement for Wyeth stockholders and a prospectus for Pfizer. This document will contain important information about the proposed merger, and investors and security holders are urged to read it when it becomes available.