Mylan Inc. (NYSE:MYL) announced today that it has completed $500 million of interest-rate swaps to fix the interest rate of a portion of its term loan borrowings to take advantage of the recent decline in medium term dollar interest rates. The swaps serve to fix the interest cost on this debt through year-end 2010 at a rate of 6.03%. The company has now executed $2 billion of interest rate swaps at a weighted average rate of 6.55%.
Additionally, the company reconfirmed its previous guidance of a full-year 2008 weighted average cost of financing of approximately 6.5%.
"We believe we have put in place a capital structure that is ideal for this difficult credit environment," said Mylan Vice Chairman and CEO Robert J. Coury. "With protection against short-term interest rate fluctuations, no significant near-term debt maturities, a current cash balance in excess of $700 million, a committed undrawn revolving credit facility and no requirement to access the credit markets, Mylan could hardly be in a stronger position to deal with the current economic climate."
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