Credit Suisse First Boston and Citibank are preparing a $350 million acquisition credit for St. Louis-based Express Scripts, backing the company's acquisition of New Jersey-based National Prescription Administrators. The total purchase price for the acquisition is $515 million, with cash on hand and a share issuance contributing the remainder, according to a banker. The credit is a $350 million, six-year "B" loan, but it could not be determined what deal the new tranche was being tacked on to. Pricing and timing of a bank meeting had not been determined by press time last week.
Express and NPA are pharmacy benefit management companies. Express, which offers claims processing, formulary design, and disease management services has BB+/Ba1 ratings and is the second largest independent PBM in the U.S. based on its 47 million covered lives. George Paz, cfo, did not return calls. Citi and CSFB officials did not return calls.
Express is no stranger to the debt market. It acquired competitors, ValueRx, for $445 million in 1998, and DPS, for $700 million in 1999 successfully integrating the acquired operations, according to Standard & Poor's. Growth trends in the industry are expected to continue over the intermediate term, given the aging population and the steady launch of new, innovative drugs.