Alere Inc. Announces Refinancing of Senior Secured Credit Facilities
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WALTHAM, Mass., June 18, 2015 /PRNewswire/ -- Alere Inc. (NYSE: ALR) (the "Company") announced today that it has closed new senior secured credit facilities totaling $1.95 billion and used a portion of the proceeds thereof to repay in full and terminate its existing secured credit facilities. Goldman Sachs Bank USA, GE Capital Markets, Inc., J.P. Morgan Securities LLC, DNB Markets, Inc., RBC Capital Markets, HSBC Securities (USA) Inc. and Citizens Bank, N.A. acted as joint lead arrangers for the new credit facilities. Goldman Sachs Bank USA will serve as the B term loan administrative agent and General Electric Capital Corporation will serve as the collateral agent and pro rata administrative agent for the lenders under the credit facilities.
The new credit facilities consist of term loan facilities totaling $1.7 billion and a $250 million revolving credit facility. The term loans, all of which were drawn at closing, consist of $650 million of "A" term loans and $1.05 billion of "B" term loans. No amount was drawn under the revolving credit facility at closing.
The "A" term loans and the Company's borrowings pursuant to the revolving line of credit bear interest at a rate per annum of, at the Company's option, either (i) the Base Rate, as defined in the credit agreement, plus an applicable margin of 2.00%, or (ii) the Eurodollar Rate, as defined in the credit agreement, plus an applicable margin of 3.00%. The "B" term loans bear interest at a rate per annum of, at the Company's option, either (i) the Base Rate plus an applicable margin of 2.00% or 2.25% depending on the Company's consolidated secured net leverage ratio, or (ii) the Eurodollar Rate (which, in the case of such "B" term loans, is subject to a 1.00% floor) plus an applicable margin of 3.00% or 3.25% depending on the Company's consolidated secured net leverage ratio.
The Company used approximately $1.68 billion of the proceeds of the new term loans drawn at closing to repay in full and terminate its existing secured credit facilities and to pay various fees and expenses associated with the transaction. The Company may use the remaining proceeds of the new term loans and available capacity under the new revolving credit facility to finance permitted acquisitions, to finance capital expenditures, for working capital and for other general corporate purposes, subject to the terms of the credit agreement.
Foley Hoag LLP represented the Company in the transaction, and White & Case LLP represented the joint lead arrangers in the transaction.
About Alere Alere believes that when diagnosing and monitoring health conditions, Knowing now matters™. Alere delivers reliable and actionable information through rapid diagnostic tests, resulting in better clinical and economic healthcare outcomes globally. Headquartered in Waltham, Mass., Alere focuses on rapid diagnostics for infectious disease, cardiometabolic disease and toxicology.
To view the original version on PR Newswire, visit:http://www.prnewswire.com/news-releases/alere-inc-announces-refinancing-of-senior-secured-credit-facilities-300101582.html
SOURCE Alere Inc.
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