Credit Suisse First Boston and Deutsche Bank closed out AmeriPath's $290 million credit last week. A banker familiar with the situation said no further changes were made to the deal after some tweaks to the bond and bank debt occurred earlier this month (LMW, 3/17). The deal includes a $225 million "B" loan priced at LIBOR plus 41/2% with an original issue discount of 1%. There is also a $65 million revolver priced at LIBOR plus 31/2%. The credit backs plans by Amy Acquisition Corp., a Welsh, Carson, Anderson & Stowe company, to acquire the cancer diagnostics provider for $839.4 million, which includes AmeriPath's 2002 debt and about $65.1 million in contingent obligations. The B+/B1-rated credit accompanies a $275 million bond deal that also backs the transaction.
Throughout syndication, investors had voiced concern over factors such as the company's leverage, which was quoted over five times total at the post transaction level. But when the proposed credit was downsized and the bonds were increased, Riviera Beach, Fla.-based AmeriPath's senior leverage decreased from 2.9 times to two times. Welsh Carson expects to close the entire acquisition before the end of April. Calls to CSFB and Welsh Carson officials, as well as an AmeriPath spokesperson were not returned by press time. A Deutsche Bank official declined to comment.