Credit Suisse First Boston and Deutsche Bank are launching this Wednesday a $365 million deal backing plans by Amy Acquisition Corp.-- a Welsh, Carson, Anderson & Stowe company-- to acquire cancer diagnostics provider AmeriPath. The bank duo will be shopping a $290 million "B" piece at LIBOR plus 33/4% and a $75 million revolver. Pricing on the revolver could not be ascertained. The transaction is valued at $839.4 million, including AmeriPath's 2002 debt and an estimated $65.1 million in assumed contingent obligations (LMW, 12/16). CSFB and Deutsche Bank bankers did not return calls.
Riviera Beach, Fla.-based AmeriPath will release its 2002 fourth quarter and year-end financial results tomorrow. There were reports that results fell below investor expectations. James New, ceo of AmeriPath, further acknowledged in a company report that the fourth quarter results were below company targets. He noted, however, that AmeriPath's "cash collections in the fourth quarter and for the year were [still] strong." Welsh Carson and the company expect the transaction to close before April 30 of this year. An AmeriPath spokeswoman did not return calls, while a Welsh Carson official declined to comment.