Bio-Rad Laboratories enters five-year $200 million revolver

By Wendy Van Sickle

Columbus, Ohio, April 16 – Bio-Rad Laboratories Inc. entered into a $200 million revolving credit facility on April 15 with JPMorgan Chase Bank, NA as administrative agent and J.P. Morgan Securities LLC as lead arranger and bookrunner, according to an 8-K filing with the Securities and Exchange Commission.

The credit facility, which matures April 15, 2024 and may be extended up to three times, provides for up to $25 million of letters of credit.

Borrowings may be increased by an additional $200 million with lender commitments.

Interest will accrue initially at Libor plus 112.5 basis points. The margin may range from 112.5 bps to 175 bps based on leverage. The commitment fee may range from 12.5 bps to 25 bps and is initially set at 12.5 bps.

Under the terms of the agreement, the company must maintain a leverage ratio of not greater than 3.5 to 1.0. In addition it may not permit the ratio of its consolidated EBITDA to its consolidated interest expense to be less than 4.0 to 1.0.

Proceeds will be used to make permitted acquisitions, for working capital and for other general corporate purposes.

Bank of America, NA, HSBC Bank USA, NA and MUFG Bank, Ltd. acted as co-syndication agents and Citibank, NA and Wells Fargo Bank, NA as co-documentation agents.

The credit agreement replaced the company’s previous credit agreement dated as of June 20, 2014, with JPMorgan as agent.

Bio-Rad is a Hercules, Calif.-based manufacturer and supplier of products and systems used to separate chemical and biological materials and to identify, analyze and purify their components.

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