Varietal Distribution sets structure on $1.665 billion credit facility ahead of launch

By Sara Rosenberg

New York, June 1 - Varietal Distribution Holdings, LLC released details on the structure of its proposed $1.665 billion senior secured credit facility as the deal is getting ready to launch with a bank meeting in New York on Wednesday and in London on Thursday, according to a market source.

Bank of America, Goldman Sachs and JPMorgan are the lead banks on the deal.

The facility consists of a $250 million six-year revolver, a $715 million seven-year term loan B and a $700 million euro equivalent seven-year term loan B, the source said.

Proceeds will be used to help Varietal Distribution, a newly formed company controlled by Madison Dearborn Partners LLC, fund its acquisition of VWR International Inc. from Clayton, Dubilier & Rice, Inc. for a cash merger consideration of $2.196 billion, less certain transaction expenses and subject to certain other adjustments.

In connection with the buyout, the company is tendering for VWR parent company CDRV Investors Inc.'s $350 million of senior floating-rate notes due 2011, $481 million of 9 5/8% senior discount notes due 2015, $200 million of 6 7/8% senior notes due 2012 and $320 million of 8% senior subordinated notes due 2014.

The tender offer will expire on June 26.

The transaction is expected to be completed in the third quarter, subject to expiration or termination of the waiting period under the Hart-Scott-Rodino Antitrust Improvements Act of 1976 and certain European antitrust approvals.

VWR is a West Chester, Pa., distributor of laboratory products.

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