Harlan Laboratories to launch $305 million credit facility on Tuesday

By Sara Rosenberg

New York, Feb. 25 - Harlan Laboratories Inc. is set to hold a bank meeting at 10:30 a.m. ET in New York on Tuesday to launch a $305 million credit facility, according to a market source.

UBS Securities LLC and Jefferies Finance LLC are the joint bookrunners on the deal.

The facility consists of a $20 million 31/4-year revolver, a $200 million 33/4-year first-lien term loan and an $85 million 41/2-year second-lien term loan, the source said.

The revolver and first-lien term loan are talked at Libor plus 550 basis points with an original issue discount of 99, and the second-lien term loan is talked at Libor plus 1,000 bps with an original issue discount of 97, the source continued.

Both term loans have a 1.25% Libor floor, while the revolver has no floor.

The first-lien term loan has 101 soft call protection for one year and the second-lien term loan is non-callable for one year, then at 103 in year two and 101 in year three.

Amortization on the first-lien term loan is 1% per annum. There is no amortization on the second-lien loan.

Proceeds will be used to refinance existing debt.

Commitments are due on March 12, the source added.

Harlan is an Indianapolis-based provider of pre-clinical and non-clinical contract research, research models, lab animal diets and services.

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