The defensive nature of the healthcare industry pushed up Dade Behring's levels to 89-90 last week in an auction. Deutsche Bank was rumored to be the buyer of the $5 million chunk, although officials there would not confirm the transaction. Another $5 million piece traded after the auction in the same range. Levels are up from the 85-86 context late last month (LMW, 10/30). "It's been getting bid up," said a market player. "In general, health care is a safer bet in a bad environment. Dade is in diagnostics, which is also good." Dade Behring, based in Deerfield, Ill., makes diagnostic equipment which tests how blood coagulates. Calls to John Duffey, cfo, were referred to Pattie Overstreet-Miller, v.p. of corporate communications, who did not return calls.
Dade Behring has a $1.25 billion deal that breaks down into five tranches and expires in 2006. Deutsche Bank, Morgan Stanley, Goldman Sachs, and Credit Suisse First Boston are the lead arrangers. Pricing is linked to the company's adjusted leverage ratio.