Henry Schein enters into $400 million unsecured loan with JPMorgan

By Sarah Lizee

Olympia, Wash., May 21 – Henry Schein, Inc. obtained a $400 million unsecured loan from JPMorgan Chase Bank, NA on Monday, according to an 8-K filing with the Securities and Exchange Commission.

The loan matures on the earlier of March 31, 2019 and the consummation of the spin-off of direct wholly owned subsidiary HS Spinco, Inc.

Proceeds will be used, among other things, to fund the company’s purchase of all of the equity interests in Butler Animal Health Holding Co., LLC directly or indirectly owned by Darby Group Cos., Inc. and some other sellers for a total purchase price of $365 million.

The loan’s terms and interest rate are the same as the loans made under the company’s $750 million revolving credit agreement with JPMorgan, the filing noted.

As previously reported, the revolver’s spread over Libor ranges from 69 basis points to 107.5 bps, depending on the company’s consolidated leverage ratio, and the commitment fee ranges from 6 bps to 17.5 bps, also based on leverage.

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

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.