Life sciences company Serologicals closed out a $117.5 million credit with its first ever "B" loan to back the acquisition of Chemicon International. The transaction was completed last Monday after the tranche sizes shifted for the initially proposed $125 million deal. Bud Ingalls, Serologicals' v.p. of finance and cfo, said the company had recently improved its cash position, so it opted to increase the four-year revolver from $25 million to $35 million for more flexibility. The initially proposed five-year, $100 million "B" loan also decreased to $82.5 million, he added. Pricing terms closed at LIBOR plus 41/4% on the "B" piece and LIBOR plus 33/4% for the revolver, Ingalls noted. Proposed pricing did not change during syndication.
The deal had missed the acquisition's March 31 target closing deadline by a week after the investor commitment cutoff date was extended beyond March 21. Ingalls said timing was not ideal, referring to the market lull that occurred after the war in Iraq started. The facility replaced the Norcross, Ga.-based company's previous, Bank of America-led $65 million revolver. Ingalls said Serologicals selected UBS to lead the credit because the bank had also been the financial advisor for the acquisition.
The Chemicon purchase was for $95 million, less Chemicon's outstanding debt as of the closing date. Chemicon's strength in the academic research marketplace will help the biological product maker expand its business, especially in the areas of cell culture and molecular biology, stated David Dodd, president and ceo of Serologicals, in a company report.