Dade Behring seeks amendment to lower interest rate on term loans

By Sara Rosenberg

New York, Oct. 1 - Dade Behring Holdings Inc. is looking to amend its 2002 credit facility including asking lenders for a reduction in the current Libor plus 425 basis points interest rate on the term loans.

"Dade Behring remains committed to our targeted business strategy, intense focus on customers, careful management of cash and payment of our debt," said John Duffey, chief financial officer, in a news release. "Our consistent strong financial performance, as well as the steps we have taken to further pay down our debt, have enabled us to seek revised loan terms."

On Sept. 29 Dade Behring Holdings' corporate credit and senior secured ratings were upgraded by Standard and Poor's to BB from B+ and the subordinated debt rating was raised to B+ from B-.

On Sept. 30, the company repaid $20 million on its term loans. Including this amount, the prepayments on the term loans have totaled $75 million in 2003.

The Deerfield, Ill. clinical diagnostics company obtained the $575 million credit facility in connection with its emergence from Chapter 11. Deutsche Bank is the administrative agent on the loan, which consisted of a $125 million multicurrency revolver with an interest rate of Libor plus 400 basis points, a $300 million six-year term loan with an interest rate of Libor plus 425 basis points and a $150 million six-year term loan with an interest rate of Libor plus 425 basis points. The exit financing credit agreement contained a provision allowing for the step down of interest rates based upon the achievement of specified ratings tests.

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