Carestream to launch $2.09 billion credit facility Monday

By Sara Rosenberg

New York, March 7 - Carestream Health Inc. has scheduled a bank meeting for Monday to launch its proposed $2.09 billion credit facility, according to a market source.

Credit Suisse and Goldman Sachs are the joint lead arrangers on the deal.

The facility consists of a $150 million revolver (Ba2/B+) talked at Libor plus 225 basis points, a $1.5 billion first-lien term loan B (Ba2/B+) talked at Libor plus 225 bps and a $440 million second-lien term loan (B3/B) talked at Libor plus 550 to 600 bps, the source said.

Proceeds will be used to help fund Onex Healthcare Holdings Inc.'s acquisition of Eastman Kodak Co.'s health group business, which consists of Kodak's medical, dental and molecular imaging systems businesses.

Under the transaction agreement, Onex Healthcare, a subsidiary of Onex Corp., is buying the health care business for up to $2.55 billion, consisting of an initial payment of $2.35 billion in cash plus up to an additional $200 million if Onex achieves certain returns with respect to its investment.

Carestream is based in Rochester, N.Y.

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