Hologic to launch $2.55 billion credit facility on Wednesday

By Sara Rosenberg

New York, Sept. 4 - Hologic Inc. is scheduled to hold a bank meeting on Wednesday to launch its proposed $2.55 billion senior secured credit facility, according to a market source.

Goldman Sachs, Bank of America, Citigroup and JPMorgan are the joint lead arrangers on the deal, with Goldman and Bank of America the joint bookrunners, and Goldman the left lead.

The facility consists of a $200 million five-year revolver, a $250 million five-year term loan A, an $850 million 51/2-year term loan B and a $1.25 billion 18-month capital markets term loan X, the source said.

The capital markets term loan X is expected to be refinanced with convertible debt or other equity or equity-linked financing.

Proceeds from the credit facility will be used to help fund the acquisition of Cytyc Corp., and repay bank debt at both companies if any is outstanding.

Under the terms of the agreement, Cytyc shareholders will receive 0.52 shares of Hologic common stock and $16.50 in cash for each share of Cytyc common stock they own. The cash consideration totals about $2.1 billion.

Hologic is a Bedford, Mass., developer, manufacturer and supplier of diagnostic and medical imaging systems for the health care needs of women. Cytyc is a Marlborough, Mass., diversified diagnostic and medical device company.

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