Hologic sets Wednesday launch for $800 million credit facility

By Sara Rosenberg

New York, June 16 - Hologic Inc. has scheduled a conference call for Wednesday to launch its proposed $800 million credit facility, according to market sources.

Goldman Sachs is the lead arranger and bookrunner on the deal.

The facility consists of a $200 million revolver talked at Libor plus 250 basis points, a $450 million term loan A talked at Libor plus 250 bps and a $150 million term loan B talked at Libor plus 325 bps, sources said.

The upfront fee on the term loan A is 1 bp per $1 million.

On the term loan B, lenders are being offered an original issue discount of 99, sources added.

The structure on the deal as outlined by the credit facility commitment letter was slightly different, with the entire $600 million of term loan debt said to be a term loan A tranche with initial pricing on it and the revolver expected at Libor plus 275 bps.

The company, however, said in a filing with the Securities and Exchange Commission that the term loan A was expected to carry pricing in the area of Libor plus 250 bps to 275 bps with a potential for some modest upfront fee.

Proceeds will be used to help fund the acquisition of Third Wave Technologies Inc. for $11.25 per share, or about $580 million.

A tender offer for the share purchase is expected to begin within two weeks, with completion taking place about a month later.

Depending on whether the company needs to extend the tender offer period and on the timing of HSR review, it may be able to close the acquisition in the early to mid-August time frame.

Hologic is a Bedford, Mass.-based developer, manufacturer and supplier of diagnostics, medical imaging systems and surgical products dedicated to serving the health care needs of women. Third Wave is a Madison, Wis.-based provider of DNA and RNA analysis products to clinical, research and agricultural customers.

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