Deutsche Bank continues to push through the exit financing for Dade Behring. In an effort to get the financing done, the bank has increased pricing on the $450 million "B" term loan by 75 basis points. A source said the credit, which includes a $125 million revolver, has been affected by a "pretty dramatic swing" in the market away from issuers and in favor of investors. Pricing on the "B" piece now rests at LIBOR plus 41/ 4%. A Deutsche Bank official declined to comment.
Dade Behring built up considerable leverage during the 1990s as a result of several acquisitions followed by significant recapitalizations, according to a Moody's Investors Service report, which rates the bank debt B1. By mid-2000, the Deerfield, Ill., supplier of in-vitro products and services to clinical laboratories had violated its bank covenants and missed interest payments. Since that time, however, the company has taken multiple steps to improve its operations and capital structure, including the restructuring of senior management and a substantial infrastructure rationalization program.