Riviera Beach, Fla.-based AmeriPath has expanded its revolver and added two new banks to its lending group. Citibank has committed $37.5 million and Credit Suisse First Boston $15 million to increase the revolver from $230 million to $282.5 million, noted Gregory Marsh, cfo of the cancer diagnostics, genomic and related information services firm. The increased loan will be used to further the presence of the company and for general working capital. "An increased loan was the cheapest way of raising capital," said Marsh, adding, "a minimal charge of less than $100,000 was incurred with no rate change."
FleetBoston Financial and Bank of America are the leads on the original credit, arranged in December 1999. Pricing is LIBOR plus 23/8%, with final maturity in 2004. In March this year, the credit was amended to enable AmeriPath to record charges in excess of those previously agreed with lenders following the acquisition and integration of Inform DX.
The amendment increased the interest rate by 3/8%, though a declining interest rate environment has mitigated the charge, said Marsh.