Henry Schein lifts private placement shelf facilities to $775 million

By Susanna Moon

Chicago, April 30 - Henry Schein, Inc. said it tacked on anther $375 million to its private placement shelf facilities with three insurance companies, boosting the size to $775 million.

The shelf facilities are uncommitted and will allow the company to issue senior promissory notes to the lenders at fixed-rate terms to be agreed upon at the time of issuance during a three-year period through April 2015, according to a company press release.

Henry Schein will choose the term of each issuance, which may range from five to 15 years, with an average life no longer than 12 years, the release noted.

Proceeds will be used for general corporate purposes, including working capital and capital expenditures, to refinance debt and to fund potential acquisitions.

Henry Schein has drawn $200 million under these facilities and now has $575 million remaining available.

"These expanded credit facilities provide us with attractive terms and interest rates, additional resources in financing corporate initiatives, as well as flexibility in managing our long-term capital structure," said Steven Paladino, executive vice president and chief financial officer.

On Aug. 10, 2010 the company entered into new $400 million private placement shelf facilities with New York Life Investment Management LLC and Prudential Investment Management.

New York Life's agreement was for $150 million and Prudential's was for $250 million, according to a previous 8-K filing with the Securities and Exchange Commission.

Henry Schein is a health-care products and services company based in Melville, N.Y.

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