Alaris Medical targets end of June to complete $210 million senior subordinated notes sale

By Paul A. Harris and Sara Rosenberg

St. Louis, May 23 - Alaris Medical Inc. announced that it intends to bring a public deal for $210 million of senior subordinated notes as part of a refinancing unveiled Friday.

Citigroup is the dealer-manager of the tender offer included in the transaction and is likely to emerge as bookrunner on the bond deal, according to one informed source.

Details are expected on underwriters, maturity, timing, and structure of the notes by June 5, the source added.

The notes will come with a proposed $265 million senior secured credit facility in early June, a company spokesman told Prospect News on Friday.

Citigroup and UBS Warburg are the joint lead arrangers on the bank deal, with CIBC and Bear Stearns participating in the syndicate as well.

Alaris Medical Systems' proposed recapitalization plan includes a tender offer for the outstanding 11 1/8% senior discount notes due 2008, the 11 5/8% senior secured notes due 2006 and the 9¾% senior subordinated notes due 2006. There will be a public offering by of 9.1 million shares of common stock.

Also Alaris Medical Systems will merge into Alaris Medical Inc. to form one surviving company called Alaris Medical Systems Inc.

A company spokesman told Prospect News on Friday that Alaris intends to complete the transactions by the end of June.

Proceeds will be used to fund the tender offers, to reduce the company's debt level and annual interest expense, and for general corporate purposes. If these transactions are successfully executed, the company expects a reduction in annual interest expense of approximately $26 million on a pre-tax basis, according to a news release.

San Diego-based Alaris Medical, through its wholly owned operating company, Alaris Medical Systems, develops practical solutions for medication safety.

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