| Add to balance / Manage account | User: | Log out |
| Prospect News home > News index > List of issuers C > Headlines for Charles River Laboratories International, Inc. > News item |
Charles River's $1 billion term A expected at Libor plus 275 bps
By Sara Rosenberg
New York, June 10 - Charles River Laboratories International Inc.'s approximately $1 billion five-year term loan A is expected to carry initial pricing of Libor plus 275 basis points, according to a DEFA14A filed with the Securities and Exchange Commission on Thursday.
As was previously reported, pricing on the term loan A and the company's proposed $250 million five-year revolver will be based on leverage.
If the leverage ratio is 2.75 times, pricing is Libor plus 275 bps. If the ratio is 2.0 times to 2.75 times, pricing is Libor plus 250 bps. If the ratio is 1.25 times to 2.0 times, pricing is Libor plus 225 bps, and if the ratio is less than 1.25 times, pricing is Libor plus 200 bps.
The commitment fee on the revolver can range from 25 bps to 50 bps based on leverage.
JPMorgan and Bank of America are the lead banks on the $1.25 billion senior secured credit facility (Ba1/BBB-).
Financial covenants include a minimum fixed-charge coverage ratio and a maximum total leverage ratio of 3.50:1.00, with step-downs to be agreed upon.
Amortization on the term loan is 5% in year one, 10% in year two, 15% in year three, 20% in year four and 50% in year five.
There is a $250 million accordion feature.
Proceeds will be used to help fund the acquisition of WuXi PharmaTech Inc. for $21.25 per WuXi American Depositary Share. Each WuXi share will be exchanged for $11.25 in cash and $10 of Charles River common stock determined by an exchange ratio. The transaction is valued at $1.6 billion.
Adjusted combined leverage will be 3.3 times.
Closing is expected by the fourth quarter, subject to approval by each company's shareholders and the satisfaction of customary conditions and regulatory approvals.
Charles River is a Wilmington, Mass.-based provider of research models and associated services and of preclinical drug development services. WuXi is a China-based drug research and development outsourcing company.
© 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.