Henry Schein closes on $500 million replacement revolver due 2017

By Marisa Wong

Madison, Wis., Sept. 13 - Henry Schein, Inc. entered into a $500 million revolving credit agreement on Sept. 12, according to an 8-K filed Thursday with the Securities and Exchange Commission.

The new facility, which matures in September 2017, replaces Henry Schein's current $400 million revolving credit facility scheduled to mature in September 2013.

Interest is equal to Libor plus 77.5 basis points to 107.5 bps, depending on the company's consolidated leverage ratio. The initial spread is 87.5 bps.

The company plans to use the facility for working capital and general corporate purposes, including capital expenditures, the repurchase of its capital stock, permitted refinancing of existing debt and potential acquisitions.

"We are very happy to announce this expanded credit facility at favorable terms," chairman and chief executive officer Stanley M. Bergman said in a press release.

"This new facility reflects the recognition of Henry Schein's ongoing success and our strong financial results."

J.P. Morgan Securities LLC is the bookrunner and a joint lead arranger for the facility, and HSBC Bank USA, NA is the other joint lead arranger and syndication agent. JPMorgan Chase Bank, NA is the administrative agent.

Henry Schein is a Melville, N.Y.-based provider of health care products and services to office-based dental, medical and animal health practitioners.

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