Alere Inc. Announces $2.1 Billion Credit Facilities

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  Published in Health and Fitness on Friday, July 1st 2011 at 9:55 GMT by Market Wire
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Alere Inc. Announces $2.1 Billion Credit Facilities -- WALTHAM, Mass., July 1, 2011 /PRNewswire/ --

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WALTHAM, Mass., July 1, 2011 /PRNewswire/ -- Alere Inc. (NYSE: [ ALR ]) ("Alere") announced today that it has closed senior secured credit facilities totaling $2.1 billion.  Jefferies Finance LLC, GE Capital Markets, Inc., Credit Suisse and Goldman Sachs Bank USA acted as joint lead arrangers for the credit facilities, and GE Capital, Healthcare Financial Services serves as administrative agent for the lenders under the credit facilities.

The credit facilities consist of term loan facilities totaling $1.85 billion and a $250 million revolving credit facility.  The term loan facilities consist of a $925 million "A" term loan facility, of which $625 million was drawn at closing and $300 is available to be drawn on a delayed basis (subject to the terms of the credit agreement for the credit facilities), and a $925 million "B" term loan facility, all of which was drawn at closing.  No amount was drawn under the revolving credit facility at closing.

The "A" term loans and Alere's borrowings pursuant to the revolving line of credit bear interest at a rate per annum of, at Alere's option, either (i) the Base Rate, as defined in the credit agreement, plus an applicable margin, which varies between 1.75% and 2.50% depending on Alere's consolidated secured leverage ratio, or (ii) the Eurodollar Rate, as defined in the credit agreement, plus an applicable margin, which varies between 2.75% and 3.50% depending on Alere's consolidated secured leverage ratio.  The "B" term loans bear interest at a rate per annum of, at Alere's option, either (i) the Base Rate plus an applicable margin, which varies between 2.50% and 3.25% depending on Alere's consolidated secured leverage ratio, or (ii) the Eurodollar Rate plus an applicable margin, which varies between 3.50% and 4.25% depending on Alere's consolidated secured leverage ratio.  Interest on "B" term loans based on the Eurodollar Rate is subject to a 1.00% floor.

Alere used the proceeds of the credit facilities drawn at closing to repay in full and terminate its existing first lien and second lien credit facilities and to pay various fees and expenses associated with the transaction.  Alere may use the remaining credit facilities to finance permitted acquisitions, to fund permitted stock repurchases, 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 Alere in the transaction, and White & Case LLP represented the joint lead arrangers in the transaction.

About Alere Inc.

By developing new capabilities in near-patient diagnosis, monitoring and health management, Alere enables individuals to take charge of improving their health and quality of life at home.  Alere's global leading products and services, as well as its new product development efforts, focus on cardiology, women's health, infectious disease, oncology and toxicology.  Alere is headquartered in Waltham, Massachusetts.

SOURCE Alere Inc.