Becton Dickinson gets $9.1 billion 364-day bridge term loan agreement

By Tali Rackner

Norfolk, Va., Nov. 14 – Becton, Dickinson & Co. entered into a $9.1 billion 364-day bridge term loan agreement with Goldman Sachs Bank USA, as administrative agent, lead arranger and bookrunner, according to an 8-K filing with the Securities and Exchange Commission.

Proceeds will be used to fund the cash portion of its $12.2 billion acquisition of CareFusion Corp. and associated transaction costs.

Interest on the unsecured bridge loan is Libor plus 100 basis points to 250 bps, based on the company’s debt ratings and the number of days the loan remains outstanding.

The financial covenants require Becton Dickinson to have (a) a minimum ratio of consolidated EBITDA to interest expense of 5 times as of the last day of each fiscal quarter and (b) a minimum ratio of debt to EBITDA of no more than 4.75 times as of the last day of each fiscal quarter following the closing of the bridge loan agreement.

JPMorgan Chase Bank, NA is a co-arranger and syndication agent. Bank of Tokyo-Mitsubishi UJF, Ltd., BNP Paribas, Citibank, NA and Morgan Stanley Senior Funding, Inc. are co-arrangers and documentation agents.

The medical technology and supply company is based in Franklin Lakes, N.J.

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