PerkinElmer launches new $545 million credit facility

By Sara Rosenberg

New York, Dec. 3 - PerkinElmer Inc. held a regarding a new $545 million credit facility on Tuesday, according to market sources. The deal is expected to go well, the sources said, but added that credit work may take some time since the company operates in so many industries.

Merrill Lynch is the lead bank on the deal.

The loan consists of a $100 million five-year revolver with an interest rate of Libor plus 300 basis points and a $445 million term loan B with an interest rate of Libor plus 350 basis points.

"I think it should go," a sell-side source told Prospect News. "It's priced up from where the current deal is. Institutions will do it because of the ratings. There are a lot of moving parts [to the company since it is involved in pharmaceutical, telecom, and aerospace sectors]. People need to do their [research] and hopefully [decide] before the commitment date."

Proceeds will be used by the Boston technology company to help redeem convertible notes and to replace the existing revolver.

Coming up in the primary, O'Charley's Inc. is scheduled to hold a bank meeting on Wednesday regarding a new $285 million credit facility consisting of a $135 million revolver and a $150 million term loan B with an interest rate of Libor plus 350 basis points, according to a syndicate source. Wachovia Bank is the lead bank on the deal.

Proceeds will be used to help fund the acquisition of Ninety Nine Restaurant & Pub for approximately $160 million. The acquisition is expected to close in the first quarter of 2003.

O'Charley's is a Nashville restaurant chain.

U.S. Investigations Services Inc. is also scheduled to hold a bank meeting on Wednesday. The meeting is regarding a new $400 million credit facility, according to a syndicate source. Lehman Brothers is the lead bank on the deal.

The loan is expected to consist of a $225 million term loan B, a $125 million term loan A and a $50 million revolver, the syndicate source said.

Proceeds will be used to help fund the company's acquisition by The Carlyle Group and Welsh, Carson, Anderson & Stowe.

U.S. Investigations Services is an Annandale, Pa. provider of security support to government agencies and commercial entities.

Other names that have been mentioned in terms of new deals recently include: Vanguard Health Systems Inc., J.L. French Automotive Castings, Inc., Amscan Holdings Inc., Sanmina-SCI Corp., Premcor Inc. and Weider Publications Inc.

Vanguard Health is looking to obtain a $150 million add-on term loan to help fund the acquisition of five hospitals from Baptist Health Systems, according to market sources. Bank of America is the lead bank on the deal.

Vanguard Health is a Nashville healthcare provider.

J.L. French Automotive Castings is seeking $185 million in new financing through two different credit facilities.

Proceeds from the loans will be used to repay existing bank indebtedness, including all scheduled principal amortization through 2006, and provide additional liquidity.

Amscan has signed commitment letters with Goldman Sachs Credit Partners L.P. to refinance and extend the maturity of its existing credit facility.

Amscan is an Elmsford, N.Y. party goods manufacturer and distributor.

Sanmina-SCI is looking to obtain a new $250 million senior secured credit facility, which is expected to close this month.

Proceeds will be used to help repay debt under the company's existing credit facility, to repay the outstanding balance under the receivables securitization facility, to refinance or restructure other debt, and to fund further expansion of its business and working capital.

Sanmina-SCI is a San Jose, Calif. provider of customized integrated electronic manufacturing services.

Premcor plans to finance its purchase of Williams Cos.' Memphis refinery with 50% equity and 50% debt. According to market sources, details of the debt financing are not available at this time.

Premcor is an Old Greenwich, Conn. petroleum company.

Weider Publications is expected to use bank debt to help fund the company's purchase by American Media Inc. and Evercore Partners. The transaction is expected to close in the first quarter of 2003.

J.P. Morgan Securities Inc. and Bear, Stearns & Co. acted as financial advisors to AMI and Evercore and are providing financing in connection with the transaction, according to a news release.

Meanwhile, the secondary bank loan market is still pretty firm with a decent level of trading activity taking place throughout the day, according to traders.

According to one trader, bank debt that is "stressed", meaning that it trades in the 80's is especially firm. "There are better buyers, guys looking for value," the trader explained.

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