Boston Scientific gets $7 billion credit facility

By Sara Rosenberg

New York, April 26 - Boston Scientific Corp. closed on a $7 billion credit facility due April 21, 2011, according to an 8-K filed with the Securities and Exchange Commission Wednesday.

Banc of America Securities LLC and Merrill Lynch & Co. acted as joint lead arrangers and joint bookrunners on the deal. Bank of America is administrative agent, Merrill Lynch Capital Corp. is syndication agent, and Bear Stearns Corporate Lending Inc., Deutsche Bank Securities Inc. and Wachovia Bank are documentation agents.

The facility, which closed on April 21, consists of a $5 billion term loan and a $2 billion revolver.

Pricing on the term loan can range from Libor plus 30 to 100 basis points, depending on ratings, and pricing on the revolver can range from Libor plus 15 to 65 basis points, depending on ratings.

Boston Scientific also got a $7 billion interim loan agreement, led by the same banks, of which $700 million was drawn. Pricing on the interim loan can range from Libor plus 30 to 100 basis points, depending on ratings.

Proceeds were used to fund the acquisition of Guidant Corp. The total consideration paid to former Guidant shareholders consisted of about 577 million shares of Boston Scientific common stock and $14.5 billion in cash.

Boston Scientific is a Natick, Mass.-based developer, manufacturer and marketer of medical devices. Guidant is a producer of cardiovascular therapeutic devices and related products.

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