Affymetrix delays acquisition close again to work on debt, litigation

By Sara Rosenberg

New York, Jan. 10 - Affymetrix Inc. has moved the targeted closing date on its purchase of eBioscience Holding Co. Inc. to the first quarter from January as work continues to be done on financing, according to an 8-K filed with the Securities and Exchange Commission on Tuesday.

Additionally, the company needs the extra time to defend litigation related to the acquisition that was brought by a holder of its 3.5% senior convertible notes due 2038.

Initially, it was thought that the transaction could close as early as fourth quarter 2011, but late last year, the company disclosed that the debt financing was still being arranged, resulting in the delay of the closing.

In early December, the company launched a $190 million five-year senior secured credit facility to investors that consists of a $170 million term loan A and a $20 million revolver.

Both tranches were presented with talk of Libor plus 600 basis points with a 1.5% Libor floor and an original issue discount of 98.

General Electric Capital Corp., Silicon Valley Bank and CIT Bank are the lead banks on the deal.

In addition to helping fund the $330 million cash acquisition, proceeds from the credit facility will be used to repay eBioscience's existing credit facilities and for general corporate purposes.

Affymetrix is a Santa Clara, Calif.-based provider of technology used by pharmaceutical, diagnostic and biotechnology companies, as well as leading academic, government and nonprofit research institutes. eBioscience is a San Diego, Calif.-based company with a position in flow cytometry and immunoassay reagents for immunology and oncology research and diagnostics.

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