Affymetrix plans $90 million credit facility for eBioscience purchase

By Sara Rosenberg

New York, May 4 - Affymetrix Inc. has received a commitment for a $90 million five-year senior secured credit facility to help fund its acquisition of eBioscience Inc., according to an 8-K filed with the Securities and Exchange Commission on Friday.

GE Capital Markets and Silicon Valley Bank are the lead banks on the deal.

The facility consists of a $15 million revolver and a $75 million term loan.

In addition to funding the acquisition, the facility will be used to repay eBioscience's existing bank debt, and for working capital and general corporate purposes.

The credit facility commitment is subject to a number of conditions, including the receipt of at least $115 million of proceeds from additional financing, the filing said.

Under a revised agreement, eBioscience is being purchased for $315 million in cash subject to usual adjustments.

Closing is expected late in the quarter ending June 30.

Originally, Affymetrix had agreed to buy eBioscience for $330 million, and in December 2011, a $190 million five-year senior secured credit facility had been launched to fund the transaction. That deal had consisted of a $170 million term loan A and a $20 million revolver, both talked at Libor plus 600 basis points with a 1.5% Libor floor and an original issue discount of 98.

However, closing of the acquisition was delayed from the initial timeline of fourth quarter 2011 because the company needed to restructure the financing arrangements.

"By amending the transaction, we are now able to realize the benefits of combining with eBioscience with significantly less senior secured debt than under the original agreement," Frank Witney, president and chief executive officer of Affymetrix, said in a news release.

Affymetrix is a Santa Clara, Calif.-based provider of technology used by pharmaceutical, diagnostic and biotechnology companies, as well as academic, government and nonprofit research institutes. eBioscience is a San Diego, Calif.-based company with a position in flow cytometry and immunoassay reagents for immunology and oncology research and diagnostics.

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