Invitrogen $2.65 billion credit facility expected as September business

By Sara Rosenberg

New York, June 23 - Invitrogen Corp.'s proposed $2.65 billion senior secured credit facility is currently anticipated to launch to retail investors sometime in the September timeframe, according to a market source.

The banks already started meeting with potential senior managing agents for the deal last week.

Bank of America, UBS and Morgan Stanley are the joint lead arrangers and joint bookrunners on the facility, with Bank of America the left lead and administrative agent, and UBS and Morgan Stanley the co-syndication agents.

The facility consists of a $250 million revolver, a $1.5 billion term loan A and a $900 million term loan B, the source said.

Price talk on the revolver and the term loan A has started circulating in the Libor plus 250 basis points area, the source added.

Proceeds will be used to help fund the acquisition of Applied Biosystems, help repay all of Invitrogen's debt, other than its convertible notes and certain other exceptions, and provide for ongoing working capital and general corporate purposes of the combined company.

Under the agreement, Invitrogen is buying Applied Biosystems from Applera Corp. in a cash and stock transaction valued at $6.7 billion.

The transaction is targeted to close in the fall, subject to approval by Invitrogen and Applera-Applied Biosystems shareholders and the satisfaction of customary closing conditions, completion of the previously filed and announced separation of Applera's Celera group, and regulatory approvals. It is not subject to financing.

On July 1, Applera announced that it completed the separation of its Celera business and that the remaining Applera business, which is what Invitrogen is purchasing, changed its name to Applied Biosystems.

Following the close of the transaction, the combined company will be named Applied Biosystems, Inc. and will have its corporate headquarters in Carlsbad, Calif.

Invitrogen is a provider of life science technologies for disease research, drug discovery and commercial bioproduction. Applied Biosystems is a developer and marketer of instrument-based systems, consumables, software and services.

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