UBS Warburg is fully underwriting a $125 million credit that backs Serologicals' acquisition of Chemicon International. The deal includes a five-year, $100 million "B" loan and a $25 million revolver. Bud Ingalls, Serologicals' cfo, said the deal should hit the market next week, noting that this is a debut "B" loan for the company. Ingalls explained that the company was advised that the institutional piece would receive the best reception in the market.
He would not divulge pricing details, but he stated that the secured facility would most likely price higher than its existing Bank of America-led $65 million revolver, which the new line will replace. The existing credit is priced at LIBOR plus 11/2% with a 50 basis point commitment fee. A UBS official declined to comment.
Serologicals selected UBS to lead the credit because the bank had also been the financial advisor for the acquisition, he said. Ingalls added that the facility would be the first rated deal for the Norcross, Ga.-based company. The purchase is valued at $95 million, less Chemicon's outstanding debt as of the transaction's closing date. Serologicals is a provider of biological products to life science companies.