Biovail Corporation
NYSE : BVF
TSX : BVF

Biovail Corporation

May 26, 2005 08:31 ET

Biovail Renews Revolving Term Credit Facility

TORONTO--(CCNMatthews - May 26, 2005) -

Biovail Corporation (NYSE:BVF)(TSX:BVF) today announced that it has successfully renewed its Revolving Term Credit Facility with its syndicate of Canadian and American banks.

Biovail identified its cash-flow expectations and capital requirements for 2005 - based on the implementation of the first phase of the Company's new Strategic Plan and revised strategy for the commercialization of its products in the United States - and has therefore renewed the Credit Facility at US$250 million. The agreement is for renewable one-year terms, with a one-year term out option for Biovail. The interest rates charged under the facility remain the same in this renewed facility, as do the financial covenants.

"In 2004, Biovail successfully paid down the outstanding balance on its Revolving Term Credit Facility, which was in keeping with its stated objective of maximizing cash flow to reduce its debt," said Dr. Douglas Squires, Chief Executive Officer at Biovail Corporation. "Furthermore, the realignment of our U.S. commercial operation will result in significant cost savings that, in turn, has enabled us to reduce our Credit Facility. As such, there is no need to incur stand-by fees on a higher facility.

"Once again, Biovail is very pleased at the confidence demonstrated in the Company by the support from this excellent group of banks in both countries."

The Administrative Agent for the Revolving Term Credit Facility is Scotia Bank and The Syndication Agent is Bank of Montreal. Canadian Lead Managers include The Royal Bank of Canada, and HSBC Bank Canada. American Lead Managers include Credit Suisse First Boston, UBS LLC and J.P. Morgan.

There are currently no drawings on the Revolving Term Credit Facility and the Company has US$230 million in cash on hand.

About Biovail Corporation

Biovail Corporation is a specialty pharmaceutical company, engaged in the formulation, clinical testing, registration, manufacture, and commercialization of pharmaceutical products utilizing advanced drug-delivery technologies. For more information about Biovail, visit the Company's Web site at http://www.biovail.com.

For further information, please contact Ken Howling at 905-286-3000 or send inquiries to ir@biovail.com.

"Safe Harbor" Statement Under the Private Securities Litigation Reform Act of 1995

To the extent any statements made in this release contain information that is not historical, these statements are forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. We have based these forward-looking statements on our current expectations and projections about future events. Our actual results could differ materially from those discussed in, or implied by, these forward-looking statements. Forward-looking statements are identified by words such as "believe", "anticipate", "expect", "intend", "plan", "will", "may" and other similar expressions. In addition, any statements that refer to expectations, projections or other characterizations of future events or circumstances are forward-looking statements. Forward-looking statements include, but are not necessarily limited to, risks and uncertainties, including the difficulty of predicting U.S. Food and Drug Administration and Canadian Therapeutic Products Directorate approvals, acceptance and demand for new pharmaceutical products, the impact of competitive products and pricing, new product development and launch, reliance on key strategic alliances, tax rate assumptions, availability of raw materials and finished products, the regulatory environment, the outcome of legal proceedings, fluctuations in operating results and other risks detailed from time to time in the Company's filings with the Securities and Exchange Commission and the Ontario Securities Commission. Biovail undertakes no obligation to update or revise any forward-looking statement.

Contact Information

  • Biovail Corporation
    Kenneth G. Howling, 905-286-3000