Millipore $250 million term loan expected at Libor plus 137.5 bps

By Sara Rosenberg

New York, June 6 - Millipore Corp. revealed that the $250 million six-year senior unsecured term loan contained in its acquisition financing package will carry an interest rate of Libor plus 137.5 basis points, according to an 8-K filed with the Securities and Exchange Commission Tuesday.

The financing package also includes a $500 million five-year senior unsecured term loan and a €430 million five-year senior unsecured revolver.

Pricing on the $500 million term loan will be based on ratings.

Amortization on the $250 million term loan will be 1% per year, with the remaining principal payable at maturity, while amortization on the $500 million term loan will be 10% per year.

UBS Securities is the lead bank on the credit facility.

Proceeds from the deal will be used to help fund the acquisition of Serologicals Corp.

Millipore has also received a commitment for a $400 million senior unsecured one-year bridge loan by a lending group that includes Bank of America, Goldman, Sachs & Co. and UBS Loan Finance LLC.

The bridge loan will bear interest at the greater of 7% or the interest rate on U.S. treasury obligations maturing on the 10th anniversary of the closing, plus 2%.

In addition, Millipore is offering $550 million of convertible senior notes due 2026 for acquisition financing.

Under the acquisition agreement, Serologicals' shareholders will receive $31.55 in cash for each share of Serologicals they own. The total value of the transaction, including the assumption of the projected debt at closing, is estimated at $1.4 billion.

Assuming the transaction closes by June 30, Millipore expects the acquisition to increase its 2006 non-GAAP earnings per share between $0.10 and $0.15, which will result in 2006 non-GAAP earnings between $3.00 and $3.10 per share. Millipore anticipates that its 2007 non-GAAP earnings for the combined company will be in a range of $3.60 to $3.75 per share. The company expects cost savings and synergies of $9 to $10 million in 2007 and $15 to $17 million in 2008.

The transaction is subject to Serologicals shareholder approval, customary regulatory approvals and other conditions.

Millipore is a Billerica, Mass.-based bioprocess and bioscience products and services company. Serologicals is an Atlanta-based consumable biological products company.

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