Alere increases senior secured term loan B size to $925 million

By Sara Rosenberg

New York, June 29 - Alere Inc. upsized its term loan B to $925 million from $875 million, according to a market source.

Pricing on the B loan was left unchanged at Libor plus 350 basis points, with a 1% Libor floor and an original issue discount of 991/2.

The company's $2.1 billion senior secured credit facility (Ba2/BB-) still includes a $250 million revolver, a $625 million term loan A and a $300 million delayed-draw term loan A, all priced at Libor plus 275 bps with no Libor floor.

There is a leverage-based pricing grid on the revolver, term loan A and term loan B.

Specifically, when senior secured leverage is greater than 3.0 times, pricing increases by 25 bps, and when senior secured leverage is greater than 4.0 times, pricing increases by an additional 50 bps - so 75 bps in total.

Jefferies & Co., GE Capital Markets, Credit Suisse Securities (USA) LLC and Goldman Sachs & Co. are the lead banks on the deal.

Proceeds will be used to refinance existing debt, to fund the buyback of common stock and to add cash to the balance sheet.

Allocations are expected to go out on Thursday.

Alere is a Waltham, Mass.-based provider of near-patient diagnosis, monitoring and health management to enable individuals to improve their health and quality of life at home.

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