UBS Warburg's $100 million "B" piece for Serologicals' acquisition of Chemicon International is hitting the market tomorrow with a LIBOR plus 4 1/4% coupon. The five-year, fully underwritten deal also includes a $25 million revolver priced at LIBOR plus 3 3/4%, according to a banker familiar with the facility. This is the life sciences company's first "B" loan. Bud Ingalls, Serologicals' cfo, said in a previous interview that Serologicals was advised that an institutional piece would receive the best reception in the present market (LMW, 2/24). UBS was also the financial advisor for the $95 million acquisition. A UBS official declined to comment.
The new facility will replace Norcross, Ga.-based Serologicals' existing $65 million revolver, led by Bank of America. This April 2002 deal was priced at a tighter 1 1/2% over LIBOR rate with a 50 basis point commitment fee. The new credit will be a first-time rated deal for the biological products provider. Serologicals has expanded its business through with acquisitions of Pentex Blood's protein business from Bayer and the antibody producer Bioscot. The company has also fully integrated its Dec. 2001 purchase of Intergen Co. Serologicals' market capitalization had increased from $90 million in 2000 to $450 million at year-end, 2001.